Sell Goods Abroad
Sell Goods Abroad: Pakistan’s textile exports aren’t just struggling — they’re crashing. Years of poor government policies caused this collapse. Instead of making the industry globally competitive, the government handed out subsidies to cover up inefficiencies. Now, the damage is clear. Textile exports have stopped growing.
Local Failures Exposed
One example is Gul Ahmed Textile Mills. The company told the stock exchange it will shut down its garment export business. It said high costs, policy changes, and tough regional competition caused continuous losses. It blamed rising energy prices, expensive fabrics, a stronger rupee, and higher taxes.
These reasons show most problems are local — and fixable. But since no one fixed them, Pakistan has fallen behind India, Bangladesh, and Vietnam in textile exports.
Weak Infrastructure
Another big problem is poor logistics. Moving goods within Pakistan costs 15.6% of GDP, says the Federation of Pakistan Chambers of Commerce & Industry (FPCCI). That’s nearly double the cost in developed countries. These high costs make our exports less competitive.
Ports like Karachi Port and Port Qasim work at only one-third of their capacity. Containers stay stuck twice as long as in nearby countries. This slows trade and hurts exports. Meanwhile, countries like India, Vietnam, and Bangladesh have invested in ports, railways, and supply chains.
Unsustainable Strategy
But instead of solving these issues, the government relies on remittances from overseas Pakistanis. It expects $43 billion this year — a record. That might help the budget for now, even though exports are falling. But this is not a real fix. Remittances can’t build factories, fix ports, or grow exports.
Relying on money from overseas workers instead of building strong exports is risky. It puts Pakistan’s economic future at serious risk.
Published in Dawn, 4th October, 2025
