Pakistan’s textile sector, accounting for significant percentage of national exports and employing millions, stands at a critical stage amidst global shifts in climate linked trade policies and domestic energy market reforms. With the European Union’s Carbon Border Adjustment Mechanism (CBAM) threatening export competitiveness through carbon-related tariffs, and Pakistan’s move toward a Competitive Trading and Bilateral Contract Market (CTBCM) introducing new dynamics in industrial power procurement, textile producers face growing pressure to adapt. Coupled with the shift in tariff regime, the industry must swiftly align with low-carbon benchmarks to retain market access. These initiatives offer potential for cleaner and possibly cheaper power, emission reduction, decarbonization and increase in trade, but many textile units are not yet ready for the technical and regulatory challenges it brings. In this context, Alternate Development Services (ADS), in collaboration with National Textile University (NTU), convened a focused consultation session in Faisalabad titled “Textile at the Crossroads: Navigating CBAM, CTBCM, and Tariff Shifts” to facilitate informed dialogue and actionable strategies for the sector’s sustainable transformation.
Detailed proceeding report of this consultation session is attached below:
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