Pakistan has long been an important player in the global textile and apparel market, and knitwear—sweaters, jerseys, cardigans, knitted T-shirts and other knitted garments—remains one of the country’s most dynamic value-added sectors. Rooted in abundant cotton supplies and a large skilled labor pool, Pakistan’s knitwear segment supplies brands and retailers worldwide, from commodity basics to higher-quality fashion knitwear. This article provides a comprehensive look at the knitwear manufacturing in Pakistan in 2025: current scale and performance, the main production hubs, supply-chain structure, competitive advantages, operational challenges, sustainability trends, and practical steps for buyers and manufacturers to grow responsibly and profitably.
Industry scale and recent performance
Knitwear is one of Pakistan’s leading export categories within the textile and apparel portfolio. Government trade releases and international trade databases show knitwear as a consistent contributor to export earnings—recorded among the top value contributors in monthly trade reports and forming a major slice of Pakistan’s garments and readymade-garment (RMG) exports. In recent fiscal periods Pakistan’s broader textile exports, with knitwear among the top value-added items, have shown recovery and moderate growth after the shocks of recent years.
For example, trade data indicate that knit sweaters and related knitted garments accounted for hundreds of millions of dollars in exports to major markets such as the United States, United Kingdom, and EU economies, and that textile and apparel exports rose in FY2025, driven in part by knitwear and RMG growth. These export flows reflect both Pakistan’s traditional markets and expanding new buyers in Asia and Africa.
Main production hubs
Knitwear manufacturing in Pakistan is geographically clustered around established textile and apparel hubs:
- Faisalabad — often described as Pakistan’s textile heartland, Faisalabad hosts knitting mills, fabric processing units, dye houses, and many garment finishing and sewing factories. Its integrated textile ecosystem makes it a natural center for knitwear production.
- Lahore and Gujranwala — these cities contain many garment units and medium-sized knitwear manufacturers, plus access to logistics and export services.
- Karachi — as the commercial gateway and port city, Karachi supports export paperwork, large exporters, and certain high-volume knit manufacturing.
- Sialkot and smaller clusters — while more famous for sports goods, some specialized knitwear and value-added units also operate in and around Sialkot and nearby towns.
Local directories and business listings show a wide distribution of knitwear manufacturers across these cities, from small family-owned units to large factories serving international brands.
Value chain: from fiber to finished garment
Knitwear production spans several integrated stages:
- Raw material & yarn: Pakistan is a major cotton producer, and locally spun yarn feeds many downstream knit units. However, fluctuations in domestic cotton output and global prices sometimes force manufacturers to import yarn or blended fibers.
- Knitting: Circular and flat-bed machines convert yarn into knitted fabric; capacities range from small single-machine units to fully mechanized knitting mills.
- Wet processing & finishing: Dyeing, bleaching and finishing firms prepare knit fabrics; location proximity is crucial to minimize logistics and lead time.
- Cutting & sewing: Garment factories perform pattern cutting, assembly, quality control and trimming—often the most labor-intensive step.
- Finishing, inspection & export: Final washing, pressing, packaging and pre-export inspection prepare goods for shipment to buyers.
This vertical chain enables local value addition—knitwear typically yields higher export margins than raw fibers or yarn alone—but it also creates dependencies where disruption in one node (e.g., energy or inputs) can idle entire lines.
Competitive advantages
Several strengths underpin Pakistan’s knitwear industry:
- Raw material advantage: Local cotton availability and domestic spinning capacity can reduce fiber costs for value-added knitting and garmenting.
- Skilled workforce and experience: Decades of textile manufacturing built skills across knitting, finishing and garmenting that are hard to replicate quickly.
- Cost competitiveness: Labor and some overheads remain lower than many Western producers, enabling competitive pricing for basics and mid-market knitwear.
- Operational clustering: Cities with co-located spinning, knitting and finishing shorten lead times and improve coordination for buyers seeking integrated suppliers.
- Growing diversification of markets: While Western markets remain important, Pakistan has widened trade with Asian and African buyers in recent years.
Major buyers and export markets
Historically, the United States and Europe have been major buyers of Pakistani knitwear; data shows sizable exports to the US, UK and Germany among others. Beyond traditional Western markets, Pakistan has been expanding shipments to Asian markets such as China and to African nations—an evolution that helps diversify demand risk. Recent trade reports have recorded YoY growth in specific markets (for instance, increases in shipments to China during early-to-mid 2025), indicating shifting trade patterns that manufacturers should monitor.
Operational challenges
Despite the advantages, knitwear manufacturers face several persistent obstacles:
- Energy costs and reliability: High energy prices and intermittent power supply raise production costs and complicate scheduling. Government subsidies and on-site captive power have been partial remedies, but expenses remain a concern.
- Input price volatility: Global cotton price swings, and periodic constraints on local cotton availability, push some manufacturers to import raw materials at higher cost. Recent agricultural and climate variables have influenced cotton availability.
- Finance and working capital: Smaller units often lack access to affordable finance for buying yarn, upgrading machinery, or meeting extended buyer payment terms.
- Compliance and sustainability demands: International buyers increasingly demand social and environmental compliance—factory audits, restricted-substance lists, living-wage transparency, and carbon-footprint data. Meeting these standards requires investment.
- Logistics and lead times: Port congestion, documentation delays, and rising freight costs can erode competitiveness, especially for fast-fashion buyers needing short lead times.
Sustainability and compliance trends
Global buyers now prioritize environmental footprints and ethical production. In Pakistan:
- Brands and larger exporters are investing in wastewater treatment, energy-efficient dyeing lines, and certified labor practices.
- There’s growing uptake of certifications and audits (e.g., BSCI, WRAP, OEKO-TEX for fabrics, and progress reporting on energy use).
- Energy efficiency and waste-water management not only address buyer expectations but can lower operating costs over time.
Buyers should prioritize partners with clear audit histories and traceability, while manufacturers need phased investment plans to upgrade facilities and secure higher-value contracts.
Technology & upgrading: pathway to higher value
To capture better margins and diversify offerings, Pakistani knitwear factories should consider:
- Modern machinery: Investment in computerized knitting machines, automated linking and improved finishing lines raises productivity and expands design capabilities.
- Digitalization: ERP, order-management systems and digital QC lower errors, improve traceability and enable real-time reporting to buyers.
- Design & sampling: In-house design teams and rapid sampling capability help suppliers move beyond basics into fashion-oriented knitwear with higher margins.
- Lean manufacturing & workforce training: Continuous improvement programs increase yield, reduce defects and shorten cycle times.
Sourcing advice for buyers
If you’re a buyer considering Pakistan as a knitwear source, here are practical tips:
- Audit the supply chain end-to-end: Confirm yarn sourcing, dyeing and finishing capacity, and who handles inspections—fragmented relationships increase risk.
- Start with a pilot order: Run a small production and transparent KPIs for quality, lead time and compliance before scaling.
- Request compliance documentation: Worker welfare policies, environmental management systems and recent buyer audits should be visible.
- Negotiate realistic lead times: Factor in local holidays, potential energy outages, and port timelines.
- Discuss long-term collaboration: Buyers offering predictable volumes, tech support, or shared investment in upgrades can secure better pricing and preferential production slots.
Opportunities & near-term outlook
There are multiple near-term tailwinds for the knitwear sector in Pakistan:
- Export recovery and growth: As global demand stabilizes, Pakistan’s knitwear exports are positioned to grow—trade numbers in 2024–2025 show an uptick in value-added shipments.
- Market diversification: Opening new corridors in Asia and Africa reduces dependency on any single geography.
- Upgrading potential: With targeted investment in sustainability and automation, manufacturers can move into higher-value segments and niche knit applications (performance knits, technical textiles, and premium fashion knitwear).
- Policy support: Industry bodies and trade promotion efforts aim to bolster capacity and help secure preferential trade arrangements—buyers should follow official trade publications and export group updates for incentives that may improve cost structures.
Case studies & success examples
Several Pakistani exporters have successfully moved up the value chain by combining capacity investment with strategic buyer relationships: firms that built in-house finishing, secured long-term contracts with European and American brands, and implemented social compliance programs now command better margins and steadier order books. While these examples are company-specific, they illustrate the pathway: integrate vertically where feasible, invest in compliance and quality, and build design/sample capabilities.
Risks to monitor
Manufacturers and buyers should keep an eye on:
- Global trade policy shifts: Tariffs and non-tariff measures in large import markets can rapidly alter competitiveness. Recent trade developments in the region (2024–2025) underline the need for contingency planning.
- Input shocks: Cotton yield fluctuations and global fiber prices can squeeze margins.
- Climate and supply-chain disruptions: Floods or transport bottlenecks may cause sudden capacity constraints.
- Currency volatility: Exchange rate swings impact export margins and working capital.
Practical roadmap for manufacturers (6–12 months)
- Perform a gap analysis against buyer compliance checklists and identify top 3 high-ROI upgrades (e.g., effluent treatment, captive power backup, or computerized knitting).
- Pilot digital tools for order tracking and QC to reduce rework and lead times.
- Seek collaborative financing—partner with buyers for pre-finance or explore export credit facilities to smooth working capital.
- Invest in skill training (pattern making, machine maintenance, quality inspectors) to improve first-pass yield.
- Market proactively to diversified buyers—showcase audit certifications and sample collections.
Conclusion
Knitwear manufacturing in Pakistan stands at an encouraging crossroads. With a solid raw-material base, experienced labor, and clustered industrial hubs, the country can compete strongly in global knitwear markets—provided manufacturers and buyers tackle energy and compliance constraints, invest in selective upgrades, and build diversified, transparent supply chains. For buyers seeking competitive, vertically integrated knitwear partners, Pakistan offers compelling capabilities; for local manufacturers, the path to higher value lies in modernization, sustainability, and strategic long-term buyer partnerships.
