Pakistan is positioning itself as a stronger player in the U.S. home textiles market, with its ambassador to Washington, Rizwan Saeed Sheikh, traveling to New York Home Fashions Market this week to highlight the country’s untapped capacities and growth potential.
Pakistan is currently the third-largest exporter of home textiles to the U.S. after China and India. Under the tariff regime imposed by the Trump administration, Pakistan faces a 19% reciprocal tariff, compared with 30% for China and 50% for India. Sheikh underscored this as a competitive advantage: “Given the recent cast of the dice, there is opportunity for Pakistan as a major supplier – and for the buyers. We can fill the gap not only in quantitative terms but also qualitative terms.”
Untapped Capacity and U.S. Cotton Link
Pakistan’s textile sector has invested $3 billion in new facilities and equipment in recent years. While the country currently exports $17 billion in textiles globally, it has the installed capacity to reach $30 billion. As the largest buyer of U.S. cotton, importing between 10 million and 10.5 million bales annually, Pakistan has pledged to increase its U.S. cotton purchases further to help redress trade imbalances.
Home textiles made with 40% to 60% U.S. inputs, depending on category, could also receive a 20% tariff discount under a new certification system being developed by the U.S. Trade Representative and U.S. Customs. The process will be similar to certifications used for BCI and GOTS fibers.
Challenges and Opportunities
Sheikh acknowledged hurdles facing the sector, including freight rates that remain above pre-pandemic levels and high domestic energy costs, though the Pakistani government is working to reduce energy prices by at least 20%.
He also emphasized the need for Pakistani manufacturers to raise their profile in the U.S. market through direct-to-consumer sales on platforms like Amazon and by building recognizable brands. As an example, he pointed to the Roberto Cavalli luxury home collection launched at Heimtextil earlier this year.
