Japan is a promising market for Pakistani textile products but Pakistan is facing a disadvantageous position because of differential market access, as compared to regional competitors like India, Bangladesh and other Asean countries. Other regional countries enjoy duty free access to the Japanese market, either because of regional trading arrangements or having a LDC status.

Although Pakistan has GSP Plus status and is facing on an average lower duties than other countries, the tariff imposed on Pakistan’s exports is higher than the tariff imposed on exports from India, Bangladesh and Asean countries. Since the establishment of diplomatic relations between the two countries, Japan has always remained at the forefront to assist Pakistan in socio-economic development.

The automobile industry of Japan and the textile industry of Pakistan have contributed significantly to the good relationship between two countries. Pakistani raw cotton had supported the textile industry in Japan after World War II and contributed to the economic revival of Japan. Japan in turn has cooperated with Pakistan in various sectors, especially in the field of education.

Japan has expressed its desire to support the Pakistani textile industry in 2016 in order to produce high value added products and strengthen its international competitiveness.