PRIME Analytical Reports-Unlocking Business Potential for Growth-are independent and evidence backed studies on the dynamics of business environment in Pakistan. These monthly reports are prepared to improve our understanding of business and policy challenges faced by the country’s private sector and to help it steer on the path of growth.
The global clothing and textile industry is large, diverse and fragmented. It offers products ranging from those that are very basic in nature (like ginned cotton) to complex, value-added products (designed by brands like Nike). It employs an estimated 75 million people, has a market worth that is estimated to be more than $2 trillion, and exports related to this category were to the tune of $786 billion in 2014. Barring any major shock, the market is estimated to grow by an average of 7% and above in the coming years. The largest share in this market is of women’s wear ($621 billion), men’s wear ($402 billion) and children’s wear ($186 billion) respectively.
In Pakistan, the fortunes of the textile industry as a whole represent a contrasting picture compared to the healthy global scenario. The traditional part of this sector, represented by such activities as ginning, weaving, low end designs, etc, is experiencing tough times. On the other hand, the part of this industry associated with high end fashion seems to be thriving. What explains the global success of the industry on one hand, and the dismal state of the industry within Pakistan? This research report aims to find probable answers to these questions.