Muhammad Faisal Kaleem

The government plans to accelerate the digital transformation of the textile and apparel sector through traceability systems, e-commerce integration, and technology adoption under the draft Textile and Apparel Policy 2025–30, available with Wealth Pakistan. According to the document, digitalization is central to improving transparency, productivity, and competitiveness in the textile value chain.

The Ministry of Commerce (MoC), through the Export Development Fund (EDF), will incentivize projects adopting advanced technologies, including Industry 5.0 systems, artificial intelligence, robotics, the Internet of Things (IoT), automation, virtual sampling, blockchain-enabled product tracking, and big data analytics. These initiatives aim to optimize manufacturing processes, cut production costs, and enhance digital traceability across the textile and apparel industry.

The draft policy also proposes the establishment of a National Industrial Traceability System, a blockchain-based platform to ensure transparency across the entire supply chain. The system will be implemented by the Federal Board of Revenue (FBR) in coordination with the MoC, the Ministry of National Food Security and Research (MoNFSR), and the Ministry of Industries and Production (MoI&P). It will include mandatory Radio Frequency Identification (RFID) tagging of cotton bales from ginning factories to downstream industries, ensuring traceable movement of cotton and non-cotton products.

To improve policymaking through accurate data, the Ministry of Planning, Development and Special Initiatives will develop a Unified GIS-enabled National Industrial Database in collaboration with the Pakistan Bureau of Statistics (PBS) and provincial bureaus. The system will compile industrial data by area, sector, and gender, in line with international statistical standards.

The document further states that the Ministry of Commerce and the Trade Development Authority of Pakistan (TDAP) will collaborate with international online marketplaces and strategic partners to expand e-commerce access for exporters. The initiative will help small and medium enterprises (MSMEs) and artisans onboard to the Pakistan Trade Portal and other global digital platforms through B2B, B2C, and B2B2C models.

The EXIM Bank will support this effort by facilitating the establishment of overseas warehouses for e-commerce exporters. The draft policy also calls for the digitalization of trade dispute resolution. The Trade Dispute Resolution Organization (TDRO), in collaboration with Pakistan’s trade missions, will develop an online portal for the registration, tracking, and risk profiling of trade complaints to ensure swift and transparent settlement.

In addition, the Directorate General of Trade Organizations (DGTO) will digitize the record-keeping of trade bodies and link them with the Pakistan Single Window (PSW) to improve coordination with policymakers and stakeholders. The policy emphasizes that embracing digital technologies and e-commerce will help modernize the textile and apparel sector, reduce inefficiencies, and strengthen the participation of Pakistani exporters, particularly MSMEs, in global value chains.

Credit: INP-WealthPk