To understand the disparities in textile exports between Pakistan and Bangladesh, it is essential to look at several key aspects including value addition, technological advancements in the textile industry, labor costs, policies government regulations and the positioning of products on the global market.

These factors collectively impact the export performance of both countries, enabling Bangladesh to achieve higher export values ​​with comparatively lower cotton consumption, while Pakistan, despite its significant cotton production , has not yet achieved comparable financial gains.

For example, Bangladesh exports products worth over $40 billion from around 7 million bales of cotton, while Pakistan exports only $17-18 billion worth of products from about 10 million balls.

First, the difference in value added is evident in the textile industries of the two countries. Bangladesh has placed strong emphasis on increasing the value of its products through advanced processing technologies and with emphasis on value-added products.

Bangladesh’s textile sector has integrated automation and computerized machinery, enabling the production of high-value items, such as ready-made garments and high-fashion garments. On the other hand, the Pakistani industry mainly exports raw or semi-finished fabrics, which are less competitive on the world market.

To increase the value of its exports, Pakistan’s textile sector needs to adopt modern technology and focus on value-added products. Bangladesh has made significant investments in technological upgrading, which have directly contributed to its export growth.

The industry has adopted cutting-edge advancements such as robotics, automation, digital fabric printing and computerized management systems, which have improved the speed and quality of production, thereby facilitating exports meeting standards international.

Pakistan, meanwhile, faces challenges in technology adoption, leading to slow production and quality issues that weaken its global competitiveness.

Additionally, Bangladesh has implemented favorable policies that have boosted the growth of its textile sector, including the establishment of special economic zones, tax exemptions and investment incentives. These policies attracted foreign investors, promoting industrial growth and facilitating the introduction of advanced machinery.

Conversely, Pakistan lacks comparable incentives, limiting the ability of its textile industry to compete internationally. To enable its textile sector to access modern technology and achieve global production standards, Pakistan should consider adopting similar supportive policies.

Differences in labor costs and infrastructure also play a significant role in the export gap between the two countries. Declining labor costs in Bangladesh have enabled the country to produce high-value goods by combining affordable labor with advanced technology.

In contrast, Pakistan faces higher labor costs and infrastructure challenges, including energy shortages and increasing operational expenses, which directly impact production efficiency and product quality. Additionally, the quality and availability of cotton differentiates the two industries.

Although Bangladesh produces very little cotton domestically, it has supported its industry by importing high quality cotton, thereby ensuring a constant supply of premium raw materials.

Pakistan, however, faces quality issues and a decline in domestic cotton production, leading to supply constraints for its textile sector. Investments in research and technology are essential for Pakistan to improve the quality and yield of cotton, thereby enabling the textile sector to benefit from high-quality, locally sourced raw materials.

Branding and positioning in the global market are also critical factors in Bangladesh’s success. Bangladesh has strategically marketed its products internationally, leveraging modern positioning strategies that have led to significant export success. In comparison, Pakistani products do not enjoy a strong brand presence in global markets, making them less competitive. Improving global positioning and branding efforts for its products could strengthen Pakistan’s international position.

Considering these factors, Bangladesh has maximized its limited resources by leveraging modern technology, supportive policies and labor cost advantages to boost the growth of its textile sector. Despite greater cotton production in Pakistan, Pakistan struggles to achieve the same value and competitiveness for its products. Pakistan can learn from the Bangladeshi model by focusing on value addition, technological upgrades and implementing globally aligned policies in its textile industry to increase the value of exports in international markets.

Although Pakistan’s textile sector has benefited from government subsidies and incentives, growth in value addition has remained modest. To address this, the government should consider linking incentives to value addition requirements, to ensure that the industry generates a significant increase in product value.

If the focus is not on value-added exports, existing incentives risk supporting only commodity exports, which do not contribute significantly to the national economy.

By implementing a model similar to that of Bangladesh, Pakistan could strengthen its position in the global market through value-added products, technological advancements and strategic branding, thereby increasing the value of exports and contributing to the economic stability.

Commercial Copyright Recorder, 2024