Pakistan textile exporters seek US duty-free access as regional rivals gain tariff edge

A worker examines cotton yarn threads while working on a loom machine, weaving fabric at a textiles manufacturer in Karachi, Pakistan April 3, 2025. (Reuters/File)
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Updated 11 February 2026
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Pakistan textile exporters seek US duty-free access as regional rivals gain tariff edge

  • Industry says India negotiated 18 percent US tariff while Bangladesh secured zero-duty access for garments made with American cotton
  • It says improved market access for rivals, coupled with lower input costs, poses threat to Pakistan’s textile and apparel exports

ISLAMABAD: Pakistan’s textile industry on Wednesday urged the government to seek preferential market access from the United States after India and Bangladesh secured improved tariff terms, intensifying competitive pressure on the country’s largest export sector.

In a letter to Commerce Minister Jam Kamal Khan, the All Pakistan Textile Mills Association (APTMA) said recent trade developments risk eroding Pakistan’s export share in its biggest market at a time when the industry is already grappling with high energy costs, elevated interest rates and a difficult business environment.

India has negotiated an 18 percent tariff with the United States, compared with around 19 percent faced by Pakistan, while Bangladesh recently secured zero-tariff access for garments and made-ups manufactured using American cotton, the letter said.

“In view of the rapidly changing competitive landscape, we respectfully urge that the Government of Pakistan may kindly approach the United States authorities to seek duty-free access for Pakistani textile and apparel products made from American cotton,” APTMA said in the letter which it shared on social media platform X. “Such an arrangement would support Pakistan’s exports, strengthen bilateral trade, and increase US cotton sales.”

The industry body said it had previously shared similar proposals with the Ministry of Commerce ahead of tariff negotiations in early 2025 and had also approached the US embassy with a proposal for concessional market access.

It warned that improved access for competitors, combined with lower input costs in rival countries, posed a “serious and immediate threat” to Pakistan’s textile and apparel exports.

APTMA also sought a meeting with the ministry officials to advance the proposal, arguing that an arrangement linked to American cotton imports could create a mutually beneficial trade framework while helping Pakistan retain competitiveness in the US market.

Pakistan’s textile and apparel sector accounts for the bulk of the country’s exports and is a key source of foreign exchange for the struggling economy.