The textile industry of Pakistan has, for a very long time, enjoyed the benefit of a highly protected domestic market.
Likewise, Pakistan's exports of textiles, garments and made-ups have also been built up over the years rather on a protected market to the extent of quota entitlements allowed by the EU, USA and Canada.

But the scenario is undergoing to change with the quota regime ending and the entire trade in textiles being free of all quotas from 1st Jan 2005. The crutches of quotas will soon be no more. With increased globalisation, Pakistan, like all other exporters, be that in the developed or the developing countries, will face the challenges of a level playing field.

The textile industry of Pakistan will have to face two pronged competition, both in the domestic and in the international markets.

The biggest competition will come from China, which after its accession to the WTO, will corner a very high percentage, that may go up to nearly 40% to 50% of the global textile market.

The importance of competitiveness, in terms of quality, delivery schedules and price will be the high marks for all textile goods which shall be on offer in the world markets. Without increased productivity all talk of opening of world markets will be meaningless. Increase in productivity will be vital for our textile industry just as it will be for the textile industry of all other countries, be they from the developed or the developing countries. Of course, three countries namely China, India and Pakistan will have advantages, their industries having a base in the shape of plentiful supply of the vital raw material, cotton. Other countries which will have sizeable potential in textiles in future will be USA, Brazil and Turkey.

In this connection it may be noted that Mr. Anjum Saleem, Chairman, All Pakistan Textile Mills Association, has recently urged the Government to ensure a level playing field for our textile industry in order to keep its exports competitive in the world market.

According to Chairman APTMA the local producers of polyester fibre has been given protection by the Government upto 2008 under which they get 15% tariff protection on raw material and 20% on polyester fibre.
Due to high costs maintained by the manufacturers of polyester fibre, the textile industry could not enhance polyester consumption, which has stagnated at 18% to 20% for the last many years against the world standard of 50:50 with raw cotton.

A reference may be made here to the Textile Vision, which has been formulated by the Government under which definite goals have been targeted both in new investments and in BMR.

It is gratifying to note that $ 1.4 billion have already been invested in the balancing, modernisation and replacements by the textile industry. In addition to the above as many as 600,000 new spindles have been installed, besides reviving of 150,000 spindles, which have been inactive for long for one or the other reason.

Besides spinning, investment has also been made in weaving Rs. 5.266 billion, in polyester Rs. 4.411 billion and in knitting garment sector Rs. 3.367 billion.

The object of the government in formulating the Textile Vision 2005 is to transform the textile industry into an open, market-driven dynamic sector, which is internationally integrated, globally competitive and adequately equipped to exploit new opportunities created by the MFA phase out end of 2004 and be eventually among the top 5 textile exporting countries in Asia.