Brussels, (Unib Rashid) __ In 2003, Pakistan was ahead of regional competitors in textile exports, earning $8.3bn from overseas sales. At the time, Vietnam exported $3.9bn worth of textiles, while Bangladesh’s exports stood at $5.6bn. Two decades on, the picture has changed dramatically. Bangladesh and Vietnam have each become $50bn textile exporters, while Pakistan now struggles to reach $20bn.

Textiles have long been central to the economy of the region that is now Pakistan. Cotton production and cloth-making date back thousands of years, with evidence that cotton from the Indus Valley Civilisation was traded with ancient societies such as Mesopotamia and Egypt.

At the time of independence in 1947, cotton formed the backbone of Pakistan’s industrial base. During the 1950s and 1960s, the country developed a vertically integrated textile sector, linking farmers, ginners and mills. This allowed Pakistan to move beyond raw cotton exports to producing yarn, fabric and, eventually, finished goods.

As global demand grew, textile manufacturers invested in value-added processes such as knitting, dyeing and stitching. By the late 20th century, Pakistan had become a major exporter of products including bed linen, garments and hosiery, supplying markets in the United States and the European Union.

But industry growth has faltered over the past two decades. Analysts cite inconsistent government policies, declining cotton yields, rising energy costs and complex taxation as major challenges. Pakistan’s energy prices are among the highest in the region, placing local manufacturers at a disadvantage compared with competitors in South and Southeast Asia.

The impact has been severe. Hundreds of textile mills and factories have closed, while export growth has lagged behind regional rivals. Only firms that invested early in efficiency, modernisation and higher-value products have been able to remain competitive.

Despite the decline, textiles remain Pakistan’s largest export sector and a key source of employment. Economists say reversing the trend will require long-term policy stability, investment in agriculture, and a clear strategy to support value-added manufacturing in an increasingly competitive global market.