Ayesha Saba

China's decision to establish textile parks in Pakistan marks a significant milestone in the country’s journey to becoming a global textile hub. With enhanced production capabilities, better quality control, and focus on value-added goods, Pakistan stands to gain considerably from this initiative.

Dr. Liaquat Ali Shah, Executive Director of CPEC Centre of Excellence, expressed these views while speaking to WealthPK. This partnership comes at a crucial juncture for Pakistan, which is striving to revive its economy amid various challenges, he said. He said this initiative aims to foster closer economic ties between the two nations and facilitate the development of key sectors, including infrastructure, energy, and industry. “The textile sector, a cornerstone of Pakistan's economy, has been grappling with several issues, including the outdated technology, high production costs, and lack of access to the international markets,” he said. “China has the advantage of possessing advanced textile manufacturing technology. Collaboration with Pakistan will not only provide financial assistance but also give the local manufacturers access to the latest machinery, materials, and practices that can significantly reduce the production costs.

Additionally, enhancing trade agreements favouring sustainable textiles can give  the Pakistani products a competitive edge in the international markets. “As the world moves towards sustainability, Pakistan's textile sector has the potential to emerge as a leader in eco-friendly textiles. By aligning with the international standards and embracing sustainable practices, Pakistan can significantly enhance its textile exports while contributing to the global efforts to combat climate change,” the director said. Speaking on the condition of anonymity, an official from the Trade Development Authority of Pakistan (TDAP) said, “Pakistan’s textile industry, a vital sector of economy, has been severely affected by the ongoing rupee depreciation and an escalating energy crisis. For the last few months, the cost of production has reportedly surged by 100%, largely due to the unprecedented hike in the electricity prices.

The increase in the energy costs has made it nearly impossible for them to maintain the operations profitably.” “When the production costs exceed the international selling price, the businesses will be left with no choice but to halt operations," he added. He further emphasized that without the government’s intervention and relief, more units could face closure, which would exacerbate the already dire employment situation in the country. Furthermore, the government needs to implement supportive policies that facilitate this transition. Incentives for sustainable practices, such as tax breaks for manufacturers adopting green technologies, can further accelerate the growth of the textile sector. The establishment of textile parks will also play a key role in boosting industrial growth and creating employment opportunities.

Credit: INP-WealthPk