FW
A report by the Institute of Cost and Management Accountants of Pakistan (ICMA) cautions, the 29 per cent tariffs imposed by the United States on Pakistan’s exports could create significant short-term hurdles for the nation’s textile industry that constitutes over 70 per cent of its shipments to the US.
The new tariff could lead to a decline in export volumes as US buyers potentially shift their orders to countries facing lower tariffs, according to ICMA’s analysis. This shift could result in job losses and possible factory shutdowns, particularly affecting small and medium-sized exporters. However, the 90-day freeze on the tariff's implementation offers a crucial window for Pakistan to engage in negotiations with the US.
The ICMA report points out a relative advantage for Pakistan despite these challenges. While Pakistan faces a 29 per cent tariff, several regional competitors are subject to even higher rates. For instance, China faces a substantial 125 per cent tariff, while Bangladesh, Vietnam, Cambodia, and Sri Lanka have tariffs ranging from 37 to 49 per cent. Nevertheless, India and Turkey benefit from lower tariffs of 26 per cent and 10 per cent, respectively, placing Pakistani exports at a disadvantage in the US market.
To mitigate these negative impacts, the ICMA recommends immediate diplomatic engagement with the US to seek tariff relief and improved trade terms. The Pakistani Government should support the textile sector by lowering duties on essential materials and offering tax incentives, the report urges. Furthermore, it recommends, the government should diversify its export markets and products for a greater focus on high-value textile items such as denim and fashion garments.
The ICMA advises policymakers to closely monitor US tariff policies and actively explore new opportunities in markets like the Gulf, Central Asia, Africa, and Southeast Asia.
With Vietnam rapidly improving its logistics, diversifying its product range and streamlining trade processes, Bangladesh is at the risk of losing its position as the world's second-largest apparel exporter.
Highlighting Vietnam’s $44 billion worth of clothing and textile exports at the Bangladesh Investment Summit 2025, Kihak Sung, Chairman, Youngone Corporation, a pioneer in Bangladesh's garment and textile sectors, urged government agencies to take necessary steps for the country to achieve its aspiration of becoming the top apparel exporter.
Sung criticized Bangladesh's port congestion and lengthy lead times, noting, Vietnam is able to export to the US market at least three weeks faster. He emphasized the critical nature of this time difference in the fast-paced fashion industry, where buyers prioritize quicker fulfillment. While Bangladesh produces a higher volume of goods, Vietnam's product quality is superior, leading to higher prices for Vietnamese-made garments and greater profitability despite higher labor costs, he pointed out.
Sung suggested, reducing customs delays by one to ten days could resolve half of the current hindrances and mitigate geographical disadvantages. He welcomed the temporary suspension of Trump-era tariffs as a positive development.
Javier Carlos Santonja Olcina of Inditex acknowledged Bangladesh's world-class factories in LEED certification but stressed that insufficient port and airport capacity necessitates flexible shipment methods. Rear Admiral SM Moniruzzaman of Chittagong Port Authority mentioned the exploration of technologies for smoother port operations. Md Tareq Hasan of the NBR highlighted the significant assistance provided by the newly launched National Single Window to exporters.
Lutfey Siddiqi, Special Envoy to the Chief Adviser, underscored the importance of self-sufficiency and reforms, including in the labor sector, given evolving global trade dynamics. Kihak Sung was honored with honorary citizenship of Bangladesh on April 10, 2025 for his significant contributions to the industry and the nation's economy.
To tackle the growing problem of textile waste in India, Ester Industries has formed a 50/50 JV with Canada-based Loop Industries to establish what they claim will be the world’s first textile-to-textile recycling facility in India.
Designed to promote sustainable fashion and environmental responsibility, this initiative will convert discarded fabrics into high-quality, reusable materials.
Reports indicate, India is the third-largest generator of textile waste globally, yet less than 1 per cent of this waste is recycled into new clothing. This new venture aims to change that using Loop Industries’ proprietary chemical recycling technology, which can process all types of polyester waste into virgin-grade PET resin. This high-quality resin can be reused multiple times, strengthening the textile sector’s circular economy.
Loop Industries’ technology is notable for its ability to recycle polyester fibers and PET plastics that were previously considered non-recyclable. By doing so, the process significantly reduces the reliance on fossil fuels—currently the source of over 90 per cent of raw materials in the plastics industry—and helps lower carbon emissions, contributing to a more sustainable and carbon-neutral economy.
This JV aligns with the Indian government’s environmental and sustainability efforts. In a recent 'Mann Ki Baat' address, Prime Minister Narendra Modi highlighted the increasing concern over textile waste and emphasized the importance of adopting circular fashion. He commended cities such as Panipat (Punjab), Bengaluru, and Tirupur (Tamil Nadu) for their ongoing textile recycling efforts. The Ester–Loop partnership is expected to elevate India’s standing as a leader in textile recycling technology.
Ester Industries has confirmed that the recycling facility will operate with a zero-discharge system, ensuring that nearby water and soil resources remain unaffected. The plant will adhere to strict environmental regulations, setting a standard for eco-friendly industrial practices.
The announcement has been widely praised with many calling it a transformative step for both sustainable fashion and environmental conservation in India. Beyond addressing domestic textile waste, the partnership is expected to establish India as a global benchmark in advancing circular economy practices within the fashion industry.
The Confederation of Indian Textile Industry (CITI) has urged the Indian government to consider implementing a temporary Textile Exports Protection Scheme to help exporters manage the burden of increased tariff costs. This request comes in response to the Trump administration's 90-day pause on reciprocal tariffs, which CITI views as only a temporary measure.
The textiles industry body stressed the importance of intensified engagement between the Indian government and its US counterparts to reach a more sustainable and mutually beneficial long-term solution. The United States stands as the largest destination for Indian textile and apparel exports, making this issue of significant concern for the industry.
US President Donald Trump a 90-day deferral of reciprocal tariffs that were initially scheduled to take effect on April 9. These tariffs would have impacted 75 countries, including India, with which the US has a trade imbalance.
However, alongside this temporary reprieve, the US significantly increased the tax rate on Chinese imports to 125 per cent, effective immediately. Furthermore, the previously imposed higher 10 per cent tariff on these goods, which took effect on April 5, will remain in place. For India specifically, the additional 16 pe cent duty has been put on hold for the 90-day period.
Rakesh Mehra, Chairman, CITI, stated, while the temporary relief offers a short-term respite for Indian textile and apparel (T&A) exporters who were anticipating higher tariff barriers, it is not a lasting solution. He emphasized the critical need for the Indian government to intensify its discussions with US representatives to achieve a more stable and mutually advantageous outcome.
Highlighting the importance of the US market, Mehra noted, it is the top destination for Indian T&A exports. He explained, while the government is actively pursuing bilateral negotiations for improved tariff access, the industry strongly urges the consideration of an interim Textile Exports Protection Scheme. He argued, such a scheme would help mitigate the impact of the additional tariff costs, especially considering the very narrow profit margins under which T&A exporters typically operate.
Pointing out to the strategic opportunity presented by the ongoing trade tensions between the US and China, Mehta suggested, as the US looks to diversify its sourcing away from China, India has the potential to emerge as a reliable alternative. However, realizing this potential will require proactive diplomacy and a focused effort to secure a more favorable and stable tariff regime, he stressed.
Achieving a significant milestone, Pakistani denim producer Soorty's Organic Cotton Initiative (SOCI) has become the first private-sector textile manufacturer initiative in Pakistan to be recognized by the Organic Cotton Accelerator (OCA). This recognition highlights Soorty's commitment to sustainable cotton production.
Through a partnership with the OCA's Seed Commercialization Initiative, SOCI is tackling the long-standing issue of access to safe, non-GMO cotton seeds and enhancing the traceability of sustainable cotton within Pakistan. This collaboration allows SOCI to provide farmers with a reliable supply of superior, non-GMO seeds, marking a crucial advancement in organic cotton cultivation.
Emphasizing on the company’s progress Dr Yousaf, Head -Agriculture Ventures and Traceability, Soorty highlights their adoption of digitalization, which includes modern farmer advisory tools, digital bale passports for traceability, and a dedicated seed laboratory. The company’s new ROC project empowers farmers, enhances transparency, and shapes a more responsible agricultural future, he notes.
Soorty's broader sustainability strategy encompasses regenerative and organic farming, advancements in recycling, robust traceability efforts, and ethical manufacturing practices. The company integrates responsible sourcing, innovation, social impact, and digital transparency to demonstrate a more environmentally and socially conscious approach to denim production.
Central to Soorty's efforts are SOCI and the Soorty Regenagri Initiative (SRI), which provide non-GMO, ethically produced cotton while also focusing on soil rejuvenation. These initiatives offer farmers financial stability, education, ongoing support, traceability solutions, and fair market access.
Furthering its commitment to circularity, Soorty's Second Life brand converts post-consumer and post-industrial waste into new, traceable denim products. The company is also pursuing Regenerative Organic certification by year-end to complement its existing organic programs focused on soil health and biodiversity.
To enhance supply chain transparency, Soorty is introducing QR-coded cotton bales by the end of the year, allowing brand partners and consumers to verify the cotton's origin. The newly established Soorty Seed Integrity Lab further supports quality assurance through rigorous testing.
Soorty has also partnered with digital agriculture platform SAWIE to empower farmers with data analytics and AI, formalizing the agreement on January 22. Dr Khalid Mahmood, CEO, SAWIE highlights their joint effort to ensure full farm-to-fashion transparency rooted in sustainability, aiming to reduce cotton's ecological footprint and improve farmer incomes.
Soorty is also actively working to strengthen women’s roles in farming communities and digitize
financial transactions to improve transparency and efficiency for all stakeholders. In August 2024, Soorty Enterprises announced its ambition to achieve net-zero greenhouse gas emissions by 2050, with the Science-Based Targets initiative (SBTi) validating its near-term reduction targets.
Credit ratings agency ICRA has revised the long-term outlook for the Sanathan Group to '[ICRA] A' and the short-term outlook to '[ICRA] A2+.
According to ICRA, this 'positive' outlook reflects the agency’s expectation that the Sanathan Group's revenues and profit margins will improve in the future. This improvement is anticipated
to be driven by the commercialization of a new plant by Q1, FY26-end.
Upon completion of the ongoing expansion project at Sanathan Polyester (SPPL), the group's production capacity will double by the end of Q1, FY2026. This expansion is expected to further strengthen the company's operating profile due to a better product mix and its closer proximity to both raw material sources and consumption centers.
The management also anticipates that the new plant will report better operating profit margins due to savings in freight costs (resulting from closer proximity to customers) and fuel costs (due to the use of rice husk).
ICRA notes, SPPL's ability to effectively and profitably ramp up the new capacity will be a key factor in monitoring the rating. However, the agency also acknowledges Sanathan Textiles’ established relationships with customers and suppliers, which are expected to help the company secure regular and repeat orders, thereby enabling optimal capacity utilization.
The rating continues to take into account the group’s position as a leading polyester yarn manufacturer in India and the extensive experience of its promoters in the industry. The ratings also benefit from its diverse product portfolio, established distribution network, and location-specific advantages due to its proximity to raw material sources.
However, the rating remains constrained by the susceptibility of the company’s profit margins to the cyclical nature of the textile sector and the volatility in crude oil-linked raw material prices and sales realizations.
The rating is also limited by the intense competition and fragmented nature of the yarn industry, which puts pressure on pricing. Additionally, the company remains exposed to foreign exchange risks, as approximately 40 per cent of the total debt taken for the ongoing capital expenditure is denominated in foreign currency. This, combined with its raw material imports, will keep the company a net buyer of foreign currency in the near to medium term.
Sanathan Textiles is primarily involved in the manufacturing and export of polyester yarn, cotton yarn, and yarn for technical textiles. As of December 31, 2024, the total installed capacity of the company was 200,750 mtpa for polyester yarn, 14,000 mtpa for cotton yarn, and 9,000 mtpa for industrial drawn yarn.
A Norwegian activewear brand known for its minimalist design and focus on functionality, Run & Relax has launched a new sustainable capsule collection for Spring/Summer 2025, developed in partnership with Italian yarn expert Fulgar. The brand has chosen Q-Nova by Fulgar, a sustainable polyamide 6.6 fiber made from recycled raw materials, to produce a selection of its latest apparel.
This collaboration reflects a broader trend across Northern Europe, where sustainability has become a key principle in the fashion industry. Governments, consumers, and brands in Sweden, Denmark, Norway, and Finland are embracing circular economy concepts, investing in recycled and bio-based fibers, and pushing for transparency and traceability in raw materials.
For Run & Relax, using Q-Nova strengthens its mission to inspire women to embrace wellness through comfortable and responsibly made clothing. Q-Nova is produced using a low-impact mechanical process that significantly reduces environmental impact while maintaining essential performance qualities like softness, breathability, and durability.
Founded in 2011, Run & Relax creates yoga and workout apparel designed for women who balance active lifestyles with work and family responsibilities. Its SS25 collection with Fulgar highlights the brand’s ongoing commitment to ethical and ecological innovation, offering garments that combine elegance, high performance, and sustainability.
The new collection is currently available on Run & Relax’s official website.
Following a successful launch in Europe and the US, Japanese clothing retailer Muji aims to relaunch its high-end clothing line in Australia with a new design approach.
The Japanese lifestyle brand hopes that Labo, by Ryohin Keikaku, will elevate its understated, minimalist presence with a sophisticated design language and unique materials. The collection will be available exclusively at a select few stores in Melbourne and Sydney.
For this range, the company specifically sourced certain Japanese materials, such as a lightweight blend of organic cotton and traditional washi paper. Other materials include Tibetan yak wool from nomadic farmers, known for being exceptionally soft and warmer than Merino wool, and undyed cashmere from the Eastern Mongolian Plateau, celebrating the fabric's natural beauty.
The latest collection also features recycled wool and cashmere from the Bishu region of Aichi Prefecture, Japan; lyocell silk; and khadi, a handwoven, organic cotton from Kolkata.
The redesigned Muji Labo series has gained international recognition for its refined silhouettes and meticulous craftsmanship. Drawing inspiration from contemporary Japanese and Western minimalism, the brand’s classic apparel is both flowing and structured, showcasing its distinctive simplicity.
The initial release will feature essential layering pieces ideal for early fall, including breathable innerwear staples, chunky knits, and clothing made of silk, cotton, and washi paper.
After being resilient during its slowdown period, luxury brand Prada seeks to expand its operations. The brand has entered into a $1.375 billion deal to acquire its competitor, the current loss-making Versace from Capri Holdings.
The move will unite two of the biggest names in Italian fashion. It will also Italy's position in a luxury industry led by French conglomerates.
Prada will continue to build on Versace’s legacy by celebrating and reinterpreting its bold and timeless designs, says Patrizio Bertelli, Chairman. The brand will also provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships, he adds.
Prada has agreed to pay a significantly lower price for Versace than the roughly $2.15 billion, including debt, paid by Capri paid for the brand’s acquisition in 2018. Previously known as Michael Kors, Capri bought Versace from the Versace family and Blackstone.
Coats Digital, the software division of Coats Group, has won two major honours at the 2025 Just Style Excellence Awards for its innovative time-cost benchmarking solution, GSDCost. The company was recognised with the Innovation - Data Solutions Award and the Environmental - Compliance & Sustainability Award for the second year in a row, underscoring its continued impact on transforming fashion industry operations through technology and sustainability.
GSDCost was praised for revolutionising the costing process across the sewn products industry by replacing outdated analogue methods with a standardised, digital, and scientific solution. It empowers brands and manufacturers to make more accurate and consistent costing decisions, supports ethical compliance, and improves operational efficiency through its fact-based insights.
The Just Style Excellence Awards, powered by GlobalData, recognise outstanding achievements across various business domains, with winners selected through analysis of over 1 billion datasets. The programme honours excellence in areas such as innovation, sustainability, social impact, and business expansion.
The GSDCost solution earned the Innovation - Data Solutions Award for several industry-first functionalities. These include enabling brands to efficiently compare Cost-to-Make submissions from multiple vendors, creating a standardised analytics language for improved communication across supply chains, and offering comprehensive data insights on vendor productivity, machine capabilities, and ethical compliance. The solution also enables credible Bill of Labour estimates using scientifically validated international standard time benchmarks, ensuring improved accuracy in costing.
GSDCost’s role in sustainability was equally lauded. It secured the Environmental – Compliance & Sustainability Award for helping brands meet emerging regulatory requirements around fair wages and environmental impact. The platform promotes sustainable manufacturing by optimising planning and line balancing, reducing waste, and improving resource efficiency. It also integrates a global Fair Wage Tool, benchmarking wages against international standards to uphold fair labour practices.
Kunal Kapur, Managing Director at Coats Digital, expressed pride in the recognition, saying, “These awards reflect our ongoing commitment to enabling smarter, more sustainable business decisions in fashion. GSDCost has consistently delivered the tools our customers need to meet today’s complex supply chain challenges with confidence.”
Adrian Elliott, Divisional CEO, Apparel, Coats Group, added, “Winning for the second year in a row reinforces GSDCost’s value in creating a digital, transparent, and responsible global fashion supply chain. Our mission is to continue driving meaningful change through technology that enhances productivity, ensures compliance, and supports long-term sustainability goals.”
Widely acknowledged as the de-facto international standard for method-time-cost analysis in the sewn products industry, GSDCost supports a more collaborative and transparent ecosystem. By enabling the adoption of International Standard Time Benchmarks and standard motion codes, it fosters accurate cost forecasting, ethical negotiation, and environmentally responsible manufacturing across the value chain.
