Why Pakistan’s Textile Sector Can Thrive Amid U.S. Tariffs Pakistan faces a 29% tariff on textile exports to the U.S. - a significant challenge, yes, but still lower than key competitors

Despite the challenges, there’s a silver lining that positions Pakistan as a competitive player in one of the world’s largest markets. Let’s break it down:

Competitive Edge in a High-Tariff World

Pakistan faces a 29% tariff on textile exports to the U.S. – a significant challenge, yes, but still lower than key competitors like China (34%), Bangladesh (37%), and Vietnam (46%) . This relative advantage makes Pakistani textiles more cost-competitive and appealing to U.S. buyers seeking alternatives to high-tariff markets.

With global supply chains under pressure, Pakistan can position itself as a reliable, affordable sourcing destination – a golden opportunity to attract new buyers and deepen existing partnerships.

Market Share Growth Potential

As U.S. buyers pivot away from higher-tariff countries, Pakistan has a unique chance to expand its footprint in the $100+ billion U.S. textile and apparel market . The country already contributes 79% of its exports to the U.S., valued at $2.8 billion in just the first seven months of FY25. By doubling down on quality, innovation, and efficiency, Pakistan can seize this moment to grow its market share and establish long-term relationships with U.S. brands and retailers.

How Can Pakistan Capitalize on These Opportunities?

To transform these advantages into tangible growth, here’s what the industry needs to focus on:

1. Investing in Quality & Innovation: U.S. buyers value quality and reliability. By adopting cutting-edge technologies, improving production processes, and meeting sustainability standards, Pakistan can differentiate itself in a crowded market.
2. Strengthening Supply Chain Resilience: The global shift toward nearshoring and diversification creates an opening for Pakistan to showcase its strengths as a stable and strategic sourcing hub. Strengthening logistics, reducing lead times, and ensuring consistent delivery will be critical.
3. Building Stronger Trade Relationships: Engaging directly with U.S. buyers through trade missions, exhibitions, and digital platforms can help Pakistani exporters highlight their products and capabilities. Collaborations with U.S. brands can also open doors to co-creation and joint ventures.
4. Focusing on Sustainability: Sustainability is no longer optional – it’s a requirement. By adopting eco-friendly practices and certifications, Pakistan’s textile sector can align with the growing demand for sustainable fashion in the U.S. market.

A Call to Action for Stakeholders

This is not just an opportunity for businesses but a collective call to action for the government, industry leaders, and financial institutions to support the sector’s growth. Policies that incentivize innovation, improve infrastructure, and enhance export financing can play a pivotal role in helping Pakistan’s textile industry rise to the occasion.

Conclusion

While the new U.S. tariffs pose challenges, they also create a fertile ground for Pakistan’s textile sector to thrive. With its competitive tariff rate, strong export history, and untapped potential, Pakistan is well-positioned to emerge as a preferred partner for U.S. buyers. The time to act is now – let’s work together to turn this challenge into a springboard for growth!