Pakistan’s Textile Industry: A Global Powerhouse Facing Local Challenges

Pakistan is one of the world’s largest cotton producers, and its textile industry is the backbone of the national economy. Contributing over 50% of the country’s total exports, the sector includes knitwear, cotton garments, bed linens, and yarn. However, this vital industry faces serious challenges – from fluctuating cotton prices and high energy costs to new tax policies. In 2025, textile exports dropped from $20 billion to $17 billion, largely due to lower cotton prices and rising production costs. These issues threaten Pakistan’s competitiveness in the global textile market.

Labor Rights and Safety in Pakistan’s Textile Sector

The textile industry in Pakistan employs an estimated 30 million people, many of whom are women working in low-wage, informal jobs. Gender discrimination, unsafe working conditions and lack of social protection are widespread. Tragic incidents like the 2012 Karachi factory fire, which killed over 250 workers, have drawn international attention to labor rights violations – and amplified demands for greater accountability. Trade unions stress that global buyers must enforce ethical sourcing standards to ensure fair wages, workplace safety, and labor rights compliance.

Can Ethical Consumer Choices Improve Pakistan’s Textile Industry?

While ethical consumerism – such as avoiding fast fashion and supporting sustainable brands – can help, the real impact lies with manufacturers, global brands and governments. Stronger labor laws, transparent supply chains and centralized compliance systems are essential for long-term change. With coordinated efforts, Pakistan’s textile industry can remain globally competitive while ensuring ethical and sustainable practices for its workforce.