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Pakistan’s textile and garment industries are important sources of both foreign exchange earnings and employment. Textiles and garments constitute roughly 60 per cent of Pakistan’s total exports, and the proportion of garments, in particular, has been growing in export earnings. Because the garment industry is more labor intensive than the textile industry, it plays a more important role in employment creation. Because of its importance, Pakistan was greatly concerned with the end of the quota phase-out in January 2005. Specifically, Pakistan was alarmed by the potential for Chinese garment exports to dominate the international market.
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