Innovation in Pakistan’s textile revival
Publishing date: 01 December 2025
published in: Business Recorder
Pakistan’s textile industry has long served as a backbone of the national economy. It contributes heavily to the country’s GDP, drives export earnings and provides employment to millions of workers.
Despite its historic strength, the sector is now under serious strain. Hundreds of mills have closed in recent years, leaving families uncertain about their livelihoods and exposing deep structural challenges within the industry.
Much of the recent debate centres on the Export Facilitation Scheme, yet the problems extend far beyond a single policy. The difference between zero-rated imported inputs and taxed local inputs has created difficulties for manufacturers, but the broader concern is the rising cost of doing business. High electricity prices in particular have made it extremely challenging for local producers to remain competitive. Even with these pressures, the industry must not lose sight of the importance of innovation and long term planning.
Pakistan’s textile sector has historically been one of its strongest pillars. From small mills in the early years after independence to the large corporations of the 1980s and 1990s, the industry helped expand exports and drive national development. Today, however, outdated machinery, growing input costs and strong competition from regional players such as Bangladesh and Vietnam are slowing down progress.
APTMA (All Pakistan Textile Mills Association) can play a central role in addressing these concerns. While advocacy on electricity tariffs and reforms in the Export Facilitation Scheme is necessary, it is equally important for the industry to look inward. The larger textile companies, many of which already have close links with international markets, can lead the shift toward modern technology. Working together with APTMA and government institutions, these companies can promote smarter manufacturing tools, updated processes and training programmes that prepare the workforce for new ways of working.
Investment in automation, artificial intelligence and the Internet of Things offer a clear way forward. Although these technologies require significant initial spending, they bring long term benefits in efficiency, cost reduction and product quality. Companies that embrace these modern tools are better able to streamline their operations, minimise waste and produce textiles that meet international standards. This is essential if Pakistan hopes to strengthen its presence in global markets.
At the policy level, government support is critical. Incentives for companies that invest in advanced machinery, sustainable processes and energy efficient technologies would encourage faster modernisation. Tax relief on green initiatives and the development of modern textile parks could offer a fresh start for struggling manufacturers. At the same time, financing options that help small and medium-sized firms upgrade their equipment would allow them to remain competitive.
Around the world, the textile industry is moving toward sustainability and digital transformation. Markets in Europe and North America now prefer materials that are eco-friendly and produced responsibly. Technologies such as digital designing and automated knitting are fast becoming standard practice. With its strong manufacturing base, Pakistan is well positioned to take advantage of these trends, provided it adapts quickly.
Sustainable production is becoming an important requirement rather than a choice. Water saving processes, the use of natural dyes, textile recycling and energy efficient machinery can significantly reduce costs while meeting rising consumer expectations. These methods also help protect the environment and preserve precious natural resources.
One of the biggest obstacles facing the sector is outdated machinery. Many factories still depend on equipment that is no longer suited to global competition. Alongside this, a shortage of skilled labour is becoming more visible. Workers often lack the training needed to operate modern machinery or manage the requirements of a digital manufacturing environment.
Skill development must therefore become a national priority. Workers need specialised training that equips them to adopt new technologies and sustainable practices. Partnerships between universities, technical institutes and the industry can help create focused programmes that build a future ready labour force.
Encouragingly, some progress is already visible. One textile mill in Faisalabad has adopted a range of modern systems, including artificial intelligence based fabric inspection, predictive planning tools and data driven energy management. These investments have resulted in better product quality, lower waste and more efficient operations. This example shows that innovation within Pakistan can deliver real results and should be embraced more widely.
International companies such as Adidas and Nike offer useful lessons as well. Their focus on sustainability, transparency, and end to end digital processes has helped them stay ahead in a rapidly changing market. Pakistan’s textile sector can draw inspiration from these practices and incorporate similar approaches to strengthen its own competitiveness.
This is an important moment for the industry. The government, textile manufacturers and industry leaders must work closely to build a culture of innovation, sustainability and operational excellence. By adopting new technologies, investing in vocational training and prioritising sustainable solutions, Pakistan’s textile sector can regain momentum and create new opportunities.
As the global textile landscape evolves, Pakistan must evolve with it. Innovation, efficiency and environmental responsibility are no longer goals for the future but requirements for the present. With forward-looking leadership and consistent policy support, the textile industry can rise again and secure a stronger future for the millions of workers who depend on it.
