The textile and clothing industry is crucial for Pakistan, making up over half of its exports. Changes in trade agreements are expected to impact Pakistan's textile and clothing exports positively in the long term. However, the removal of preferential treatment poses challenges for the industry. To stay competitive, Pakistan needs to focus on improving product quality, resource efficiency, and productivity. Reforms and liberalization of the economy are also necessary to address structural issues in the sector and help it compete better in the global market.