nder the Radar is a weekly special series bringing you compelling, under–the–radar stories from around the world, one region at a time. This week in Asia, Pakistan’s textile industry—which employs 40% of the country’s workforce—struggles in the global market. Other noteworthy under–the–radar stories from the region include Hong Kong police’s warnings about a mobile app, the South Korea’s government defunds youth mental health resources, and Chinese scientists study tissue regeneration in mammals.
Pakistan’s textile industry accounts for 8.5% of the nation’s GDP, but global exports dropped by $3 billion in 2025. The Textile and Apparel Policy 2020–2024 laid the foundations for an expected $40 billion increase in exports. This industry, core to the Pakistan economy, is battling lower cotton costs and higher production costs, creating insecurity in this essential sector. In turn, many countries are beginning to source their textiles from Southeast Asian countries, such as Vietnam. This poses a great concern for Pakistan, as the country’s textile industry encompasses an entire value chain—from farming to creating clothes, linens, and other fabrics—potentially putting almost 40% of Pakistan’s working population at risk of losing their jobs.
Pakistan’s Export Facilitation Scheme lowered the value of cotton through importing sales tax–free cotton from other countries. However, cotton prices are starting to increase as of May 2025, as the international demand for cotton has grown, which will likely raise Pakistan’s domestic prices. Similarly, cotton production between 2024 and 2025 took a 33% drop, due to a combination of poor weather conditions and lower yields, prompting Pakistan’s Federal Board of Revenue to reevaluate its tax exemption on imported cotton. The cost of electricity is also increasing, as the government has raised the cost to meet the IMF’s $7 billion loan program conditions, making smaller textile companies less competitive in the global market. Similarly, U.S. tariffs put the security of the textile industry in question, urging Pakistan to negotiate with the U.S.
Recent reports also provide an optimistic outlook for how Pakistan can improve the resilience of this vital industry. One avenue for securing the textile industry’s resilience in these uncertain times is through an emphasis on eco–fashion throughout the entire value chain to align with consumer awareness. For instance, Pakistan could develop climate–resilient cotton that would ensure better yields in future years. Similarly, textile companies could prioritize the use of green energy. And the exported products could also be eco–friendly, possibly created from recycled materials.
Another means of potentially improving the textile industry in Pakistan would be to address the ongoing labor rights concerns that often fail to comply with global regulations.
The recent success of the Textile Asia 2025 exhibition also gives hope for Pakistan’s future textile exports as the country demonstrated its longstanding expertise.
Here are some other under–the–radar stories from Asia:
- Police warn Hong Kong citizens that downloading a specific gaming app will violate Hong Kong’s national security law.
- Although South Korean teens are committing suicide at an increasing rate, the government is pulling back funding for student counseling centers and mental health hotlines.
- Scientists in China compared mice and rabbits to study how mammals can potentially regenerate tissue.
a global affairs media network
Pakistan seeks cures for its ailing, vital textiles industry
Image by LoggaWiggler from Pixabay
July 4, 2025
Diplomatic Courier’s Stephanie Gull brings you weekly under–the–radar stories from around the world. This week in Asia: Nearly half of Pakistan’s workforce is employed in textiles, but this critical industry is struggling in the global market, with potentially dramatic implications.
U
nder the Radar is a weekly special series bringing you compelling, under–the–radar stories from around the world, one region at a time. This week in Asia, Pakistan’s textile industry—which employs 40% of the country’s workforce—struggles in the global market. Other noteworthy under–the–radar stories from the region include Hong Kong police’s warnings about a mobile app, the South Korea’s government defunds youth mental health resources, and Chinese scientists study tissue regeneration in mammals.
Pakistan’s textile industry accounts for 8.5% of the nation’s GDP, but global exports dropped by $3 billion in 2025. The Textile and Apparel Policy 2020–2024 laid the foundations for an expected $40 billion increase in exports. This industry, core to the Pakistan economy, is battling lower cotton costs and higher production costs, creating insecurity in this essential sector. In turn, many countries are beginning to source their textiles from Southeast Asian countries, such as Vietnam. This poses a great concern for Pakistan, as the country’s textile industry encompasses an entire value chain—from farming to creating clothes, linens, and other fabrics—potentially putting almost 40% of Pakistan’s working population at risk of losing their jobs.
Pakistan’s Export Facilitation Scheme lowered the value of cotton through importing sales tax–free cotton from other countries. However, cotton prices are starting to increase as of May 2025, as the international demand for cotton has grown, which will likely raise Pakistan’s domestic prices. Similarly, cotton production between 2024 and 2025 took a 33% drop, due to a combination of poor weather conditions and lower yields, prompting Pakistan’s Federal Board of Revenue to reevaluate its tax exemption on imported cotton. The cost of electricity is also increasing, as the government has raised the cost to meet the IMF’s $7 billion loan program conditions, making smaller textile companies less competitive in the global market. Similarly, U.S. tariffs put the security of the textile industry in question, urging Pakistan to negotiate with the U.S.
Recent reports also provide an optimistic outlook for how Pakistan can improve the resilience of this vital industry. One avenue for securing the textile industry’s resilience in these uncertain times is through an emphasis on eco–fashion throughout the entire value chain to align with consumer awareness. For instance, Pakistan could develop climate–resilient cotton that would ensure better yields in future years. Similarly, textile companies could prioritize the use of green energy. And the exported products could also be eco–friendly, possibly created from recycled materials.
Another means of potentially improving the textile industry in Pakistan would be to address the ongoing labor rights concerns that often fail to comply with global regulations.
The recent success of the Textile Asia 2025 exhibition also gives hope for Pakistan’s future textile exports as the country demonstrated its longstanding expertise.
Here are some other under–the–radar stories from Asia:
- Police warn Hong Kong citizens that downloading a specific gaming app will violate Hong Kong’s national security law.
- Although South Korean teens are committing suicide at an increasing rate, the government is pulling back funding for student counseling centers and mental health hotlines.
- Scientists in China compared mice and rabbits to study how mammals can potentially regenerate tissue.
