Pakistan’s Textile Industry Must Own Its Compliance Story
Pakistan’s textile and garment industry stands at the centre of the country’s economic identity. It contributes approximately 8.5 per cent of GDP, supports millions of direct and indirect livelihoods, and generates more than 60 per cent of national export earnings. Clothing, hosiery, denim, home textiles and athletic wear produced in Faisalabad, Karachi, Lahore and Sialkot are sold by major brands across Europe and North America.
This global footprint creates opportunity, but it also brings scrutiny. International advocacy organisations have raised concerns about wage violations, excessive or involuntary overtime, weak grievance mechanisms and the limitations of conventional social audits. Such allegations cannot simply be dismissed as hostile criticism. Wherever labour-rights violations occur, they harm workers and expose the wider industry to reputational, commercial and regulatory consequences.
However, it would be equally misleading to portray Pakistan’s export-oriented textile sector as uniformly non-compliant. The ILO Better Work Pakistan Synthesis Report for 2022-2025 found that, among the factories assessed in 2025, only 4.6 per cent were non-compliant on minimum wages and 2.3 per cent on overtime payments. These shortcomings require attention, but the findings do not support the claim that labour violations define the entire industry.
Pakistan’s problem is therefore not simply a lack of action. It is also the absence of a credible, locally owned architecture for measuring, verifying and communicating that action.
Pakistan’s problem is therefore not simply a lack of action. It is also the absence of a credible, locally owned architecture for measuring, verifying and communicating that action.
The reality is more complex. Compliance gaps persist, particularly across an extensive supply chain containing contractors, subcontractors and smaller production units. At the same time, many leading exporters are investing substantially in labour governance, worker welfare, inclusion, environmental performance and supply-chain traceability.
Pakistan’s problem is therefore not simply a lack of action. It is also the absence of a credible, locally owned architecture for measuring, verifying and communicating that action.
Most established exporters already prohibit forced labour, child labour, harassment and discrimination. They undergo buyer inspections, maintain workplace-safety systems and operate grievance mechanisms. The difficult question is whether these policies are consistently........
