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PAKISTAN’S exports are heavily reliant on the textile and apparel sector, which account for about 55 per cent of total exports and a quarter of industrial value-added exports. They provides roughly 40pc of industrial employment and 46pc of the manufacturing base.

The country is the eighth-largest textile exporter in Asia and the fourth-largest cotton producer globally. However, our export profile remains concentrated in low-value-added textile segments. Pakistan exported textile worth $17.5 billion in 2024, with nearly half directed to the EU showing a high dependency on one market.

Based on the aforementioned statistics, the recent EU–India Free Trade Agreement (FTA) will have a profound impact on Pakistan’s textile competitiveness and export prospects. This agreement between the two economic giants is a milestone in international trade diplomacy and is being referred to as the β€œmother of all deals”.

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