Exporters need shared responsibility

Environmental performance is no longer simply a matter of corporate reputation for Pakistan’s export industries. For textile, sports-goods and leather manufacturers, cleaner production is increasingly becoming a condition for continued access to major international markets.

The pressure is especially significant for textiles and apparel, the backbone of Pakistan’s export economy. The sector recorded $17.93 billion in exports in FY2025-26, although growth was only 0.26%. During July-March of that fiscal year, textiles and apparel accounted for 59.7% of Pakistan’s total exports.

The European Union remains Pakistan’s largest export destination, with textiles and clothing making up roughly 70% to 76% of the country’s exports there. Pakistan is also the largest beneficiary of the EU’s GSP+ scheme, receiving about €732 million in tariff exemptions in 2024. That makes the shift toward low-carbon and more sustainable supply chains a direct economic issue.

International buyers increasingly want suppliers to show not only the quality and price of their products, but also how they are made. Carbon emissions, energy sources, water use, waste management, traceability, labour conditions, due diligence and circularity are entering sourcing decisions.

Pakistani manufacturers therefore face pressure to install renewable energy, improve efficiency, replace machinery, treat wastewater, reduce textile waste, track emissions and hire skilled personnel. They must do so while competing with producers that have lower financing costs, stronger infrastructure and better access to green finance. The article does not question the need for decarbonisation. It asks how its financial and administrative burden should be distributed among manufacturers, brands and financiers.