Pakistan’s share in the European Union’s imports increased by 0.5 per cent in both knitted and woven categories over 2013-2017. That means GSP Plus status, valid till 2023, hasn’t helped much. However, over the same time the share of Bangladesh, Cambodia and Vietnam increased six per cent, two per cent and 1.1 per cent respectively.
The main challenges facing Pakistan's textile sector are lack of product and market diversification, low value addition and low export competitiveness. Among the measures contemplated are focusing on the domestic supply chain, adoption of latest technology, making access to industrial raw materials easy and affordable and capacity building. One essential area is making access to credit convenient and easy, especially for the small and medium sector, and introducing policies to make the system of acquiring bank credit simple and friendly and doing away with complex procedures.
Pakistan’s textile sector plays a vital role in the country’s economy with 8.5 per cent share in GDP, a 40 per cent share in the industrial workforce, a 25 per cent share in industrial value addition and a 21 per cent share in large scale manufacturing. Pakistan’s share in the global garment market is 1.1 per cent.