Pakistan's cotton textiles demand soars in China

China is ramping up its imports of Pakistani cotton textiles, with exports reaching a record $166.37 million in the first quarter of 2024, a jump of 65.85 per cent. This surge is driven by China's need to balance its export-oriented industry with domestic demand.

Previously, Pakistan's textiles were mainly for export, but they've gained significant traction within China's domestic market. Competitive pricing and high quality are key factors behind Pakistan's success. The current offerings include cotton, yarn, and fabric.

Despite this positive trend, challenges remain. Pakistan's textile industry grapples with high energy costs and sluggish global demand. However, the Chinese market presents a golden opportunity for Pakistani exporters.

To further capitalize on this opportunity, Pakistan needs to diversify its exports beyond raw materials and yarn. Supplying finished products like garments and home textiles to China holds immense potential.

However, leveraging the existing free trade agreement to its full advantage requires further effort. Many Pakistani finished goods, despite zero tariffs, haven't reached significant market share in China.