By Samia Khalid ISLAMABAD, Nov 08 (INP-WealthPK): The total exports of textiles and clothing in Pakistan stood at US$15.4 billion in 2020-21, against US$12.526 billion in the previous year. Total exports reached US$1,462,753 in August 2021, representing a 38.9% rise over the previous month's increase of 11.9%. The textile industry accounts for about 65% of Pakistan’s total exports. Unfortunately, high operational expenses, diminishing competitiveness, and less demand in the international market have all affected Pakistan's textile sector in recent years. However, the sector still has a bright future, especially due to the China-Pakistan Economic Corridor (CPEC). Pakistan is the world's fourth-largest cotton grower, fourth-largest textile manufacturer, and twelfth-largest textile exporter. Pakistan's textile industry is the country's most significant pillar and the largest export industry. This industry employs around 40% of all industrial workers and accounts for about a quarter of all industrial value addition. Despite seasonal and cyclical variations, textile goods have maintained a share of around 60.76% of the total exports of Pakistan. Textiles are Pakistan's most significant manufacturing industry, with the longest production chain and intrinsic value addition possibilities at every stage of processing. Trade in the industry accounts for 53% of the total global textile trade value and has been steadily increasing for the past two decades. Textile output grew by 5.9% from July to March FY2021, compared to a 2.58% drop the previous year. Woollen segment production saw a significant increase, which might be linked to the predictions of an early start of the winter season. Furthermore, the devastating impact of the recent pandemic has proven to be a blessing in disguise for garment producers, as Pakistan's textile sector has seen a surge in orders from European and American markets. Similarly, cotton yarn and cotton fabric manufacturing have also made significant contributions, accounting for 7% and 13% of total textile sector exports, respectively. In recent years, the popularity of clothing has skyrocketed, notably in the segments of sportswear and other casual wear. The readymade garment category has the second value-added in the whole textile industry segments, accounting for 19% of the overall textile industry's exports in August of FY2021. Knitwear currently accounts for 25% of the textile sector's export earnings, according to estimates. Pakistan now has 3,500 knitwear units, which are divided into three categories: large, medium, and small. Small businesses account for 5% of the total, medium businesses for 10%, and fully integrated factories for 5%. Pakistan's de-industrialisation trend has been reversed, and the country's industrial sector is on the road to long-term growth. The government has facilitated the industry with tax rebates and duty exemptions, which are paying off, and the sector has begun to pick up pace. The government has taken encouraging steps by providing Rs 1.13 billion in incentives to the private sector, including the elimination of regulatory duty and additional customs duty on a variety of products, particularly raw materials. In addition, 164 tariff lines in the textile sector have been eliminated, as well as a 5% regulatory duty on imports of cotton yarn along with a 10% to 5% tariff reduction. During July-March FY2021, the government provided Rs 7.5 billion for the textile and non-textile sector which is helping the sector under the duty drawback scheme. Earlier this year, Pakistan and China agreed that they would work together to develop profitable ties and industry matchmaking between private textile firms in both countries. Many Chinese companies are currently operating in Pakistan and are interested in extending their operations with further investment in the textile sector. According to the government, almost US$ 5 billion in investment is planned in the textile sector, to establish 100 new units. This will not only increase export capacity, but will also create job opportunities across the country.