T&A sector contributes around 8.5% to Pakistan’s GDP, with the EU, USA, UK, and China as its key export markets. While apparel dominates exports, fibres account for the bulk of imports, with China being the largest T&A supplier. Exports are largely concentrated in low-value yarn and greige fabric, restricting growth in premium and specialized segments. Major apparel brands sourcing from Pakistan include Levi’s, Nike, and Adidas.

Pakistan is the 5th largest cotton producer globally and ranks 6th in Asia for textile exports. Abundant cotton availability has led to a focus on cotton-rich yarn, fabric, and apparel. However, despite its historical strength, Pakistan is now a net cotton importer due to declining production. In MMF, polyester is the only major product, though the sector struggles with high import duties, making MMF-based textiles costlier and less competitive internationally.

95% of the industry is dominated by MSMEs, while larger enterprises contribute 81% of apparel exports. Around 20% of units are vertically integrated mills, providing end-to-end capacity across the supply chain. The sector is largely domestically owned, with FDI at only 5%. Around 80% of firms operate as stand-alone manufacturers, limiting their ability to build strategic brand partnerships.

Pakistan has a long-standing textile recycling culture and is a major importer of second-hand clothing, much of which is either re-exported or sold locally. However, the sector remains largely informal, resulting in inefficiencies, contamination, and poor traceability. Recycling is dominated by outdated mechanical processes focused on cotton-rich pre-consumer waste, while investment and infrastructure for advanced chemical recycling are lacking. Limited processing capacity also leads to significant downcycling of imported second-hand clothing. At the same time, Pakistan has also developed strong denim recycling initiatives converting post-consumer denim waste into new fabrics and yarns.