Pakistan’s Textile Value Chain (TVC) is vital to the nation’s economy, linking agriculture and textile production to exports. It is the country’s economic backbone, contributing to 60% of total exports and 8.5% of the GDP while employing 40% of the industrial workforce. The TVC is also one ofthe most complex and environmentally polluting value chains in Pakistan and globally. Historically, the global textile sector is a significant polluter responsible for 8%-10% of global greenhouse gas (GHG) emissions. Dependent on natural resources, the sector is also facing the rising threats of climate change. As global markets increasinglyprioritise sustainable consumption and production practices to address the growing threats of climate change and build resilient supply chains,

Pakistan’s textile industry has a significant opportunity to benefit from this sustainability transition. Despite being the world’s seventh-largest cotton producer, Pakistan has yet to fully capitalise on its potential as a major global textile player due to its various social, economic, political, and environmental constraints. The sector faces ongoing requirements for technological upgrades and investments, escalating energy and interest costs, unpredictable climate risk and the challenge of operating in a highly inflationary and politically unstable environment. Despite these formidable challenges, the TVC remains the most significant sector in Pakistan, showcasing its resilience amidst social, economic, and environmental turbulence.