The escalating trade war between the United States and China has introduced both challenges and opportunities for the global textile industry, with Pakistan positioning itself as a potential beneficiary of these shifting dynamics. As Pakistan's textile sector faces the possibility of up to $2 billion in export losses due to potential new tariffs, industry leaders are optimistic about capturing new business opportunities from China and other affected countries.

Fawad Anwar, Chairman of the Pakistan Textile Council, expressed this sentiment during a recent interview. According to Anwar, the US and China's tit-for-tat tariff exchanges create an opening for Pakistan's textile industry to gain market share. However, he cautioned that the success of this endeavor depends on effective negotiation and strategic positioning. Anwar's comments came shortly before US President Donald Trump announced a temporary pause on tariffs for several countries, leaving China as the primary target of increased US tariffs. The levies on Chinese goods were raised to 125 percent, a significant escalation in the ongoing trade conflict.

These developments have set the stage for a complex trade environment where Pakistan must navigate potential setbacks and seize emerging opportunities. The textile sector accounts for a substantial portion of Pakistan's exports, generating around $17 billion annually and serving as the country's largest employer. Given this context, the potential reinstatement of a 29 percent tariff rate on Pakistani exports by the US, following a 90-day suspension, poses a serious threat. Anwar emphasized the importance of finding a resolution to this issue, arguing that neither US retailers nor consumers could sustain the effects of such substantial tariff increases.

Across the country, industry leaders are exploring avenues to mitigate these risks and capitalize on emergent opportunities. In a statement at the inauguration of the 29th Textile Asia 2025 Expo in Karachi, Shaikh Shafiq Jhok Wala, Chief Coordinator of the Pakistan Readymade Garments Manufacturers and Exporters Association, highlighted the beneficial prospects arising from the US's heavy tariffs on Chinese products. These measures create demand for textiles and garments in the American market, which Pakistani companies are eager to fill.

The Pakistani government is actively facilitating partnerships between local industries and international companies, particularly from China and Vietnam. These collaborations are anticipated to establish industrial units in special economic zones within Pakistan, aiming to enhance the country's export capacity through the production and global distribution of 'Made-in-Pakistan' garments. According to PRGMEA, this strategy could see Pakistan's exports soar to $35 billion in the coming years, with the textile sector playing a pivotal role in this growth trajectory.

Mohammad Uzair Nizam, Project Director of Textile Asia, echoed this optimism by highlighting the robust participation of international delegates and national business leaders at the Karachi trade fair. The event underscores the perceived potential for impressive business opportunities and growth that the changing global trade landscape has to offer Pakistan's textile industry.

Despite the challenges posed by international tariffs and the volatility of global trade policies, the mood in Pakistan's textile sector remains cautiously optimistic. Industry stakeholders are strategically positioning themselves to turn current global trade tensions into a catalyst for growth and a stronger foothold in international markets.