APTMA says Pakistan can add USD 3 billion to textile exports this year

Pakistan’s textile industry can generate an additional USD 3 billion in exports during the current year and increase exports by USD 10 billion within the next two to three years through targeted new investment, All Pakistan Textile Mills Association (APTMA) Chairman Asad Shafi said.

Shafi said achieving that growth would require a competitive and predictable business environment and described expanding value-added exports, investment and employment as a priority for his tenure.

He said Pakistan has a complete textile value chain extending from fiber through spinning, weaving, processing and finishing to garments, apparel and home textiles. APTMA wants to use that domestic supply chain to produce more value-added finished goods and retain more value in Pakistan through employment, investment, industrial activity and foreign exchange earnings.

Shafi said more than 80% of Pakistan’s textile exports already consist of value-added consumer products, including apparel and home textiles. He argued that the next opportunity is to capture more of the value generated after manufacturing through product development, design, branding, marketing and retail.

Manufacturing typically accounts for less than 30% of the final retail value of apparel, according to Shafi, leaving a substantial share of value to be captured beyond the factory in international markets.

How does APTMA want Pakistan to capture more export value?

APTMA wants Pakistani manufacturers to move beyond production by building closer ties with brands, expanding Pakistani brands abroad and developing their own branding, marketing, distribution and retail channels. The association is also widening its membership to include major textile and apparel brands and retailers alongside manufacturers.

Shafi said Pakistan should continue expanding manufactured exports while also seeking a larger share of the final value of those products in international markets.

He said developing stronger links between manufacturing, branding and international retail would be one of APTMA’s priorities. The association plans to bring more Pakistani textile and apparel brands and retailers onto the same platform as spinners, weavers and value-added manufacturers.

Shafi said Pakistani companies should increasingly design, brand, market and sell products internationally rather than focusing only on manufacturing.

The aim, he said, is to use Pakistan’s existing manufacturing base as a platform for greater participation in the higher-value stages of the textile business rather than relying only on factory production.

What policy changes is APTMA seeking?

Shafi called on the government to ease foreign-exchange and regulatory restrictions that APTMA says constrain investment in overseas warehousing, distribution, marketing and retail operations, and to develop an enabling framework for e-commerce and retail-oriented shipments from Pakistan.

He said export growth would also depend on bringing the cost of doing business in line with competing economies.

APTMA is seeking industrial electricity at USD 0.07 per kilowatt-hour, gas at USD 7 per MMBtu and financing at 7% annually, which Shafi said would allow Pakistani exporters to compete more effectively with regional rivals.

He also called for restoration of DLTL support for exports and faster payment of outstanding sales tax, income tax and other government refunds to improve exporters’ liquidity.

Shafi said Pakistan’s textile sector already has manufacturing expertise, a large skilled workforce, established relationships with international buyers and significant installed capacity across the supply chain.

He argued that competitive energy and financing costs, adequate liquidity and a policy environment that encourages investment and international expansion could allow the sector to increase exports from existing capacity in the near term while undertaking investment for further growth.

APTMA plans to work with the government on a practical roadmap to increase exports, strengthen the domestic textile value chain, attract investment and expand the international presence of Pakistani textile manufacturers and brands, he said.