Faisalabad: Pakistan's hosiery industry had been a major contributor to the national economy by enhancing textile exports volume and employment opportunities for millions.
This sector has a long history of manufacturing, exports and employment, meeting local hosiery needs and exporting knitwear to other countries, earning millions of dollars foreign exchange each year.
But, over the period due to fluctuating energy and raw material prices and changing economic policies of respective governments, this sector also suffered blow after blow that hindered its growth and competitiveness in global markets.
Presently, the challenges faced by this sector range from economic, infrastructural, compliance and policy issues as the experts emphasize concrete measures to make this sector compatible to global manufacturers.
'Economic and political instability, shortage of raw materials and intense global competition posed threats to our Small and Medium Enterprises (SMEs),' noted Muhammad Akram Khan, Manager of a local hosiery unit.
He suggested proactive measures like policy reforms, technological upgrades and branding strategies to overcome these hurdles. 'We can enhance our hosiery exports and solidify our position as a leading textile exporter by addressing the challenges faced by our industry.'
A technocrat Prof Dr Muhammad Afzal also mentioned to inconsistent political and economic policies as the foremost challenges being faced by the hosiery exporters in Pakistan.
'Inflation, fluctuating exchange rates and rising costs of production badly impact competitiveness of Pakistani hosiery in global market,' he claimed. 'Depreciation in rupee value also increased cost of imported raw materials like synthetic fibers, dyes and machinery.'
He mentioned to energy costs as another reason and said, 'hosiery sector is highly energy-intensive, relying on uninterrupted power supply for knitting, dyeing and finishing processes. But, expensive electricity increases production costs and reduce profitability.'
Dr Afzal stated that Pakistan produces a significant amount of cotton but availability of high-quality raw material still remains a challenge and hosiery manufacturers have to often import required fine yarns, synthetic fibers and specialized materials. 'Dependence on imports, therefore, raises costs and disrupts supply chain due to shipping delays and fluctuating international prices.'
He also referred to lack of modern spinning and dyeing facilities that affects production of high-quality goods and their appeal in international markets in presence of stringent quality standards.
Another aspect highlighted by Dr Afzal was compliance of various international standards like environmental regulations, labor laws and quality certifications. 'Obtaining and maintaining these certifications involves significant financial and technical investment is also a challenge for our SMEs. Many among them often fall short of meeting these requirements due to outdated manufacturing practices and lack of awareness about global compliance norms.'
He said since Pakistan's hosiery industry competes with major neighboring and rival countries like India, Bangladesh and China, it needs better technologies and the government support to grab slots in international trade market.
'Therefore, we direly need investment in Research and Development (R and D) and improve design and manufacturing processes to introduce new and trendy hosiery products in line with global fashion trends,' he recommended.
As the global textile industry is increasingly focusing on sustainable and eco-friendly production processes, many international buyers prefer suppliers who follow sustainable practices like using organic fibers, water-efficient dyeing and reduced carbon footprints. Therefore, our hosiery industry must be incentivized with eco-friendly production technologies and proper regulatory frameworks.
Senior Vice Chairman Pakistan Hosiery Manufacturers and Exporters Association (PHMA) North Zone Hazar Khan sees the struck up refunds as one of key challenges for hosiery exporters. 'Although they face numerous problems, yet struck-up refunds, hike in energy tariff and high markup rates are their key challenges.'
Appreciating the government measures for reviving industrial sector, he said, 'if pending refunds are released, the SMEs in this sector will have a better chance to expand their exports despite difficult international market conditions.'
He also suggested to easing out export procedures and regulatory frameworks to resolve complicated issues of hosiery exporters. 'We require a versatile approach to overcome the challenges and strengthen Pakistan's position in global hosiery market.'
He emphasized to streamline export procedures, ensure timely tax refunds and implement long-term policies to provide stable environment to exporters.
Showing optimism for this sector, he said despite challenges, the latest export figures for the hosiery sector showed an increase of 16.49% in knitwear exports and 22.48% in readymade garments during July-December 2024 as compared to the same period during previous year.
'This growth indicates potential of this sector, provided that its challenges were adequately addressed,' he said. 'If the government, policymakers and industry stakeholders collaborate strategically, Pakistan's hosiery sector could overcome its challenges and strengthen its position in the global textile market.'
He advised manufacturers to invest in modern machinery and automation to improve efficiency and product quality. 'Promoting eco-friendly manufacturing practices and incentives for green production could help our exporters to align with global trends.'
Since, our hosiery industry has immense potential for growth, employment generation and foreign exchange earnings, a stable business environment, competitive pricing and strategic investments in technology must be ensured to fully capitalize its potential.