Pakistan’s Ambassador to the United States, Masood Khan, highlighted the significant transformation underway in Pakistan’s apparel sector, positioning itself for robust export growth.
These remarks were made during a public hearing conducted by the US International Trade Commission (ITC) on the export competitiveness of apparel industries in Bangladesh, Cambodia, India, Indonesia, and Pakistan in the US market, held in Washington DC.
Ambassador Masood Khan noted that individual companies in Pakistan are embracing advanced traceability technologies, actively promoting supply chain transparency in accordance with global standards.
He also mentioned the commitment of leading apparel companies under the Net Zero Pakistan Initiative, aiming to expedite the transition to sustainability and achieve the Net Zero goal by 2050.
Key Points from Ambassador Masood Khan’s Address
US Market Share
Masood Khan highlighted that the United States stands as the largest export destination for Pakistan. Currently, Pakistan holds a 3.3 percent share of the US market in the textiles and apparel segment.
Tariff Challenges
He mentioned that all apparel exports from Pakistan to the US are subject to applicable Most Favored Nation (MFN) tariffs, which can be as high as 38.3 percent, as Pakistan lacks preferential access to the US market.
Cotton Production
Pakistan ranks as the fifth largest cotton producer globally, with ongoing efforts to enhance cotton productivity and transition towards sustainable development.
Investment Environment
Pakistan maintains a liberal investment regime, offering a conducive environment to attract both foreign and local investors. In recent years, the sector has seen approximately $5 billion in fresh local investment for the expansion of textiles and apparel manufacturing chains.
Machinery Imports
From 2019 to 2023, the sector imported around $2.2 billion worth of new machinery, enhancing its capacity for further scale-up in apparel manufacturing.
Diverse Customer Base:
Ambassador Masood Khan highlighted Pakistan’s diverse customer base, with many prominent US enterprises and retailers, including Fortune 500 companies, already sourcing products from Pakistan.
Future Outlook
Masood Khan expressed optimism about reinforcing the strong historical trade relations between Pakistan and the United States. Pakistani apparel exporters are keen on further strengthening these ties and capitalizing on the growing potential for export growth in the US market.
