How Pakistan Can Strengthen Yarn & Fabric Exports to UAE and India Amid Regional Rivalries

Pakistan’s textile industry is the backbone of its economy, contributing nearly 60% of the country’s exports and employing millions of workers, as stated by the Pakistan Bureau of Statistics. With its strategic location, strong production base in cotton, and growing capacity in manmade fibers and blended fabrics, Pakistan holds a natural advantage as a regional supplier. Yet, rising UAE–India trade linkages and ongoing regional rivalries have created new challenges and opportunities for Pakistani exporters. The question is not whether Pakistan should act — but how it can position itself as a stronger, more resilient supplier of yarn and fabrics to these markets.

1. Understanding the Regional Dynamics

The UAE has emerged as a re-export hub for textiles, sourcing from multiple countries and distributing across the Middle East and Africa. India, with its massive textile base, is both a competitor and a market. The recent strengthening of trade relations between the UAE and India under the Comprehensive Economic Partnership Agreement (CEPA) has tilted the playing field, enabling Indian exporters to gain easier access to UAE buyers.

For Pakistan, this shift could seem like a disadvantage. However, the UAE’s demand for diverse sourcing and India’s own rising consumption mean there is still space for Pakistan to carve out a competitive role — if exporters adapt strategically.

2. Competing Through Quality, Not Just Price

While Pakistan has historically competed on cost, global buyers are increasingly focused on:

• Consistency – stable yarn counts, uniform fabric quality.

• Sustainability – organic cotton, recycled blends, water-saving dyeing methods.

• Speed – reliable and fast deliveries, especially for fashion supply chains.

By investing in certifications (such as OEKO-TEX and GOTS) and ensuring transparent supply chains, Pakistani suppliers can appeal to UAE brands and retailers who want more than just a low-cost option.

3. Leveraging Pakistan’s Cotton and Yarn Strength

Despite flood-related setbacks, Pakistan remains one of the world’s leading cotton producers. This raw strength translates into yarn exports that remain highly valued in markets like the UAE. By offering:

• Ready-to-dye yarns (flexible for downstream buyers).

• Fancy yarns (for value-added applications).

• Blended yarns (cotton-polyester, poly-viscose for menswear).

…Pakistan can strengthen its niche against Indian suppliers, who often focus on finished garments.

4. Positioning in the UAE as a Gateway

UAE isn’t just a market — it’s a hub. Fabrics and yarns sold in Dubai often end up in Africa, Saudi Arabia, or even Europe. Building long-term buyer relationships in the UAE can open doors to wider regions. Strategies could include:

• Partnering with UAE distributors and re-exporters.

• Participating in trade fairs like Dubai Expo and International Apparel & Textile Fair.

• Offering competitive shipping terms for small and mid-sized orders to appeal to re-export businesses.

5. Addressing Regional Rivalries with Smart Diplomacy

India’s CEPA with UAE is a wake-up call for Pakistan. While Pakistan has not signed similar deals, exporters can still lobby through trade associations to push for improved bilateral agreements. In the meantime, private exporters should position themselves as flexible partners — offering competitive lead times and customizations that Indian suppliers may not prioritize.

6. The Human and Economic Angle

Strengthening textile exports isn’t only about trade numbers. It directly supports millions of families in Pakistan, especially women and daily-wage workers in mills and stitching units. At a time when natural disasters like floods are undermining livelihoods, regional competitiveness can become a tool for economic resilience and social stability.

Pakistan cannot afford to be a passive observer of shifting UAE–India trade dynamics. By focusing on quality, sustainability, partnerships, and regional positioning, the country can not only defend but also grow its yarn and fabric exports. The challenge is real — but so is the opportunity. The global textile map is being redrawn, and Pakistan’s exporters must claim their space with confidence and innovation.

At HiTextile, we believe in turning challenges into opportunities. Whether it’s supplying ready-to-dye fabrics, sustainable yarns, or blended textiles for menswear, our mission is to help buyers secure high-quality products while supporting Pakistan’s textile workforce.