WASHINGTON: In a pivotal testimony before the US International Trade Commission (ITC), Ambassador Masood Khan highlighted the vitality of Pakistan’s apparel sector and called for enhanced trade relations with the United States.

The US remained Pakistan’s largest goods export market in 2022 at $6 billion, a 13.5 per cent increase from the previous year. One of Pakistan’s largest trading partners, the US also continues to be one of the country’s leading sources of foreign direct investment.

Addressing the ITC’s public hearing on Monday, Mr Khan showcased the dynamic growth of Pakistan’s apparel sector, revealing a staggering 54.4pc increase in textiles and apparel exports to $19.3bn in 2021-22.

“Embarking on a significant transformation, Pakistan’s apparel sector is strategically positioning itself for substantial growth in exports,” he said.

Ambassador Masood Khan highlights growth of apparel exports at public hearing

He told the commission that Pakistani apparel exporters were looking forward to reinforcing the strong historical trade relations between the two countries.

The surge in the apparel sector, primarily driven by a remarkable 69pc growth in exports, reflects the sector’s resilience, especially in the aftermath of the Covid-19 pandemic.

The ambassador underscored the sector’s commitment to sustainability through the Net Zero Pakistan initiative.

“Leading apparel companies are committed to accelerating the transition to sustainability and delivering the Net Zero goal by 2050,” stated Mr Khan, emphasising the industry’s conscious efforts

to align with the global environmental standards.

Net Zero is an international agreement on climate action that aims to achieve a balanced state of greenhouse gases in the atmosphere through emissions.

Net Zero initiatives aim to reduce CO2 emissions to a level that can be absorbed by the oceans and maintain less than 0.04pc to prevent climate change.

Highlighting Pakistan’s strategic position in the US market, the ambassador noted, “Textiles and apparel constitute around 85pc of Pakistan’s total exports to the US,” underscoring the nation’s 3.3pc share in the textiles and apparel segment.

He emphasised that despite not enjoying preferential access to the US market, the sector continues to thrive, contributing significantly to Pakistan’s export portfolio.

Mr Khan illuminated the sector’s key role in the nation’s economy, contributing around 60pc to national exports and 24pc to industrial value-addition. He outlined the sector’s unique strength in mature, intensive backwards and forward linkages, creating a vertically integrated value chain.

The ambassador credited this integration to the sector’s ability to generate 40pc of total industrial employment and significantly contribute to female workforce employment.

The ambassador also shed light on Pakistan’s commitment to sustainable agricultural practices, stating, “Pakistan is the third-largest producer of Better Cotton globally and promotes the cultivation of organic cotton to reduce greenhouse gas emissions.”

This commitment, combined with efforts to increase cotton productivity, positions Pakistan as a sustainable and responsible player in the global textile and apparel market.

Emphasising Pakistan’s investment-friendly environment, Masood Khan said, “Pakistan attracts high-value-added, export-oriented, and resource-efficient investments through increased integration with global value chains.”

The sector has attracted approximately $5 billion of fresh local investment for expansion, showcasing its potential for further growth and capacity scaling.

Published in Dawn, March 13th, 2024