Knitwear Manufacturing in Pakistan - Growth, Trends, and Opportunities in the Textile Industry

Knitwear manufacturing in Pakistan has become a vital contributor to the country’s textile and apparel industry, which is the backbone of its economy. Pakistan is recognized worldwide as one of the leading producers and exporters of knitwear, supplying high-quality garments to markets in the United States, Europe, and the Middle East. From sweaters and cardigans to t-shirts and sportswear, Pakistan’s knitwear sector has established a reputation for affordability, reliability, and compliance with international quality standards.

In this comprehensive article, we will explore the history, growth, processes, challenges, and future opportunities of knitwear manufacturing in Pakistan, highlighting why it has become a preferred sourcing hub for global apparel brands.

The Importance of Knitwear Manufacturing in Pakistan

The textile industry contributes around 60% of Pakistan’s total exports, and knitwear plays a central role in this sector. According to the Pakistan Bureau of Statistics, knitwear exports contribute billions of dollars annually to the economy, making it one of the largest foreign exchange earners.

Some key highlights include:

• Employment Generation: The knitwear sector provides jobs to millions of skilled and semi-skilled workers.

• Export Market: Major export destinations include the USA, UK, Germany, Spain, Italy, and the UAE.

• Diversity of Products: Pakistan produces a wide range of knitwear items including sportswear, hosiery, undergarments, t-shirts, sweatshirts, and winter knitwear.

• Integration with Supply Chains: With vertically integrated mills, Pakistan has the advantage of producing yarn, fabric, dyeing, and garmenting under one umbrella.

Historical Development of Knitwear in Pakistan

The roots of knitwear manufacturing in Pakistan can be traced back to the post-independence era (1947) when small-scale hosiery units were established in cities like Faisalabad, Karachi, and Lahore. Over the decades, these small workshops expanded into large-scale factories equipped with modern knitting machines, dyeing facilities, and garment finishing technologies.

By the 1980s and 1990s, global demand for affordable apparel grew, and Pakistan emerged as a strong competitor in the knitwear market due to its low labor costs and abundant cotton resources. Today, the country’s knitwear industry continues to evolve, adopting automation, sustainable practices, and digital printing to meet global fashion trends.

Key Knitwear Manufacturing Hubs in Pakistan

Pakistan’s knitwear industry is concentrated in major industrial cities:

1. Faisalabad – Known as the “Manchester of Pakistan,” Faisalabad is home to hundreds of knitwear factories specializing in hosiery, sportswear, and basic apparel.

2. Karachi – Pakistan’s commercial hub with large-scale export-oriented knitwear units, often catering to international brands.

3. Lahore – Famous for fashion knitwear and modern garment factories producing premium apparel.

4. Sialkot – Known globally for sportswear and sports knitwear, supplying jerseys, tracksuits, and performance clothing.

The Process of Knitwear Manufacturing in Pakistan

Knitwear manufacturing involves a series of steps to transform raw cotton into finished garments. Pakistan’s vertically integrated textile industry ensures smooth production through the following stages:

1. Yarn Production: Locally grown cotton is spun into yarn. Pakistan is among the world’s top cotton producers, ensuring easy availability of raw material.

2. Knitting: Circular and flat knitting machines are used to create different types of knitted fabrics.

3. Dyeing and Finishing: Fabrics are dyed using eco-friendly chemicals, with increasing adoption of sustainable water-saving techniques.

4. Cutting and Sewing: Skilled workers cut fabrics into patterns and sew them into finished garments.

5. Quality Control: Each garment undergoes strict quality checks to meet international standards.

6. Packaging and Export: Final products are packed and shipped to destinations worldwide.

Types of Knitwear Produced in Pakistan

The variety of knitwear produced in Pakistan caters to diverse global demands:

• Casual Wear: T-shirts, polo shirts, sweatshirts, hoodies.

• Winter Wear: Sweaters, cardigans, pullovers, thermal wear.

• Sportswear: Tracksuits, performance t-shirts, activewear.

• Hosiery: Socks, undergarments, tights, leggings.

• Fashion Knitwear: Designer knit tops, dresses, and high-end apparel.

Export Performance of Pakistan’s Knitwear Industry

According to recent statistics, Pakistan’s knitwear exports crossed USD 4 billion annually, accounting for a significant portion of textile exports. The European Union remains the biggest market, benefiting from Pakistan’s GSP+ (Generalized System of Preferences Plus) status, which allows duty-free access to EU markets.

The U.S. is another top buyer, with global brands sourcing knitwear from Pakistan due to its cost-effectiveness and improved compliance with labor and environmental standards.

Competitive Advantages of Knitwear Manufacturing in Pakistan

Pakistan’s knitwear industry enjoys several competitive advantages:

1. Abundant Raw Material: Locally grown cotton reduces dependency on imports.

2. Skilled Workforce: Generations of workers have expertise in knitting and sewing.

3. Lower Production Costs: Affordable labor and energy compared to other Asian countries.

4. Export Incentives: Government policies supporting textile exporters through subsidies and tax rebates.

5. Strategic Location: Easy access to Middle Eastern, European, and Asian markets.

Challenges Facing Knitwear Manufacturing in Pakistan

Despite its strengths, the industry faces challenges that need to be addressed:

• Energy Crisis: Frequent power shortages and rising electricity costs affect production.

• Outdated Machinery: Some units still rely on old equipment, affecting efficiency.

• Environmental Concerns: Need for sustainable water and chemical management in dyeing processes.

• Global Competition: Strong competition from Bangladesh, India, Vietnam, and China.

• Logistics and Infrastructure: High shipping costs and port inefficiencies can delay exports.

Government Support and Policies

The Pakistani government has introduced various policies to strengthen the knitwear industry:

• Textile Policy 2020–25: Aims to increase textile exports to $25 billion by offering incentives for modernization.

• Export Finance Schemes: Providing loans at low interest rates to exporters.

• Infrastructure Development: Establishment of garment cities and export processing zones.

• Sustainability Programs: Encouraging eco-friendly manufacturing to meet global buyer requirements.

The Future of Knitwear Manufacturing in Pakistan

The future of knitwear manufacturing in Pakistan looks promising with opportunities in:

• Sustainable Fashion: Adoption of organic cotton, eco-friendly dyes, and recycling practices.

• Digitalization: Use of advanced knitting machines, automation, and digital supply chain solutions.

• E-commerce Growth: Rising demand for online apparel sales globally creates opportunities for direct-to-consumer exports.

• Value-Added Products: Moving beyond basic knitwear to high-end, fashion-oriented products.

• Diversification of Markets: Expanding exports to Africa, South America, and new Asian markets.

Conclusion

Knitwear manufacturing in Pakistan has evolved from small workshops to a globally recognized industry. With its strong cotton base, skilled workforce, and growing emphasis on modernization, the country continues to hold a significant place in the global apparel supply chain. Although challenges exist, opportunities in sustainability, digital transformation, and value-added exports make Pakistan a competitive player in knitwear manufacturing.

For global buyers and investors, Pakistan remains an attractive sourcing hub offering high-quality knitwear at competitive prices.