The Economy of Pakistan
Textiles and Export Concentration
Textiles and garments make up more than half of Pakistan's exports, leaving the country exposed to a narrow set of products and buyers.
Pakistan sells cloth and clothes to the world.
Share
Textiles and clothing account for about 55 to 60 per cent of exports.
Products
Cotton yarn, bed linen, towels and denim are strengths.
Markets
The US and Europe are key buyers, often with preferential access to the EU.
Limits
Limited diversification into higher-value goods keeps export growth weak.
A towel exporter
A Faisalabad factory supplies towels to a European retailer.
Ignoring the risk of concentration
Shocks in one industry hit the whole economy.
Key takeaways
- Textiles are over half of exports.
- Cotton-based products lead.
- Western markets dominate.
- Diversification is limited.
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