The Employment Challenge of the Agreement on Textiles and Clothing: Scenario and Strategies for Pakistan

Abstract In January 2005, the quota system for imports of textiles and clothing was phased out and gave way to more liberalized global trade in textiles and clothing. The T&C industry is Pakistan’s main export engine. It is also a major industrial employer, and one of the few sectors that provide paid employment to female workers. The policy paper highlights the potentially negative impact of the phase out of the textile quota regime on employment-intensive garment production in Pakistan. This sub-sector also provides most employment for women workers. It demands mitigation of the expected social costs, for example, through skill upgrading, consistent implementation of existing labor laws and their extension to informal sector workers, as well as proactive policies that link Pakistani garments’ market access abroad with special regard for working conditions at home.