Two interpretations emerge:
Industry View:
Bangladesh’s model is less energy-intensive upstream. Gross export comparisons ignore imported input costs (fabric imports exceeding $20 billion annually). Pakistan’s deeper chain structurally increases energy intensity.
Critical View:
Bangladesh invested heavily in:
- Workforce training (particularly female participation)
- Lean manufacturing
- Buyer compliance systems
- Global brand integration
- Export clustering
Energy costs alone do not explain a 2x export gap.
Both arguments contain merit. What is missing is a measurable transformation index: How much of Pakistan’s export growth is value-added versus commodity-based? How much capital expenditure has gone into automation, ERP integration, AI-driven logistics, traceability systems?
5. The Innovation Deficit Debate
Critics argue that every export roadmap begins and ends with cheaper inputs. They ask a pointed question:
If competitive energy and rational taxation were delivered tomorrow, what structural transformation would follow?
Would the industry:
- Move aggressively into branded technical textiles?
- Invest in smart fabrics?
- Capture downstream retail margins?
- Scale digital supply chain transparency?
- Increase female labor force integration?
Or would output simply expand within existing composition?
