Pakistan's textile exports to countries other than EU fell by nine per cent this year. But textile exports to the European Union registered an increase of 19 per cent during the first nine months of the current year. This is mainly due to the GSP Plus status the EU gives Pakistan.

The country’s overall textile exports increased 3.95 per cent in the last fiscal mainly due to the increase in exports to the EU after getting the GSP Plus status. However, GSP Plus has not led to any significant rise in Pakistan’s textile exports. Textile exports to EU were expected to rise by a billion dollars a year after getting the GSP Plus status. But that hasn’t happened. Several challenges remain, including fluctuations in the prices of raw materials, energy shortages and stiff competition.

The government is working to prepare a five-year plan to provide incentives mainly to the value-added textile sectors. Under the new proposed textile policy (2014-19) the value-added textile sector would be incentivized. Textile exports would be increased to 26 billion dollars in the next five years, besides creating job opportunities.

Cotton textiles and apparel historically have been the focus of Pakistan’s textile industry, mainly because of the large amount of cotton grown in the country. Cotton and cotton products represent 61 per cent of Pakistan’s export earnings.