China’s rising clothing costs provide development opportunities for Pakistan
According to a report by Pakistan’s “Express Forum” on May 6, Pakistan is expected to seize the opportunity of rising costs in China’s clothing industry and grow into the next major clothing manufacturing country. According to the report “Weaving Wealth – Employment, Trade and Development in the Apparel Industry” released by the World Bank, for every 1% increase in the price of Chinese clothing products, the United States’ demand for Pakistani clothing products will increase by 2.53%. The rising cost of China’s textile industry provides Pakistan with a golden opportunity to develop its garment industry.
Whether Pakistan can seize the opportunity and fill the gap left by China, there are still many uncertainties. Patchamuthu Ilangovan, country director of the World Bank, said that Pakistan needs further structural reforms to solve problems such as high tariff barriers, distorted incentive policies and lack of training for young people. In addition, 19% of Pakistan’s garment industry exports are cotton exports. “We export raw materials and semi-finished products, but give away processing profits to other countries,” said Pakistan’s Commerce Minister Dast Gill.
The World Bank report stated that women occupy an important position in the textile industry in South Asia. For example, 71% of textile workers in Sri Lanka are women. But only about 5% of Pakistan’s textile workers are women. The World Bank report estimates that for every 1% increase in wages, female worker participation will increase by 16.3%. In addition, small financial coverage is also a factor affecting the development of Pakistan’s garment industry. Currently, only 15-18% of households in Pakistan have bank accounts, and the female account ownership rate is only 3%. China’s rising clothing costs provide development opportunities for Pakistan
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