Textile Industry is the most important industrial sub-sector in Pakistan. It is based on locally available raw cotton, provides largest employment to Industrial labour force and also the largest foreign exchange earner in the country. It contributes nearly 68% of our total exports. During the last boom period Pakistan has emerged as the major supply source of cotton textiles in the world market confirming its competitive strength. Pakistanís share in world yarn trade is about 30% and the share of cloth is 8%.
The development of the Manufacturing Sector has been given the highest priority since Pakistanís founding with major stress on Agro-Based Industries. For Pakistan which was one of the leading producer of cotton in the world, the development of a Textile Industry making full use of its abundant resources of cotton has been a priority area towards industrialization. At the time of independence there were only 6 Textile Units with 80,000 spindles and 3000 looms, which could only supply 8% of the domestic demand of its 76 Million population. The Government set the objective of promoting Textile Industry first as an import substitution industry and later as an export oriented industry. This showed positive results and spinning and weaving sector had rapid growth during 50ís & 60ís. Itís growth was such that by the end of 50ís Pakistan was virtually self sufficient in cloth requirement and then reached at the surplus stage to export yarn and cotton fabrics and had been progressing satisfactorily. During early seventies the Industry had set back of international recession resulting into large closures and sick units. The industry however, started improving in late seventies when market economy led Industrial Policy was introduced, promoting exports and rationalization of Import Tariffs and thereafter it had progressed with market demand.
Establishment of Research &Development Centers in Karachi and Pakistan Leather Garments Manufacturers and Exporters Associations for providing Research & Development support to textile Garments & Textile Goods Exporters.