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Cargo pants should either be made out of twill fabric—which is the same texture as khakis and chinos, but oftentimes a bit rougher for cargos—or …
… a rip-stop fabric (popular for hiking pants), which is more durable than twill.
Basically, besides looking more casual, these belts are often cheaper and tougher than narrower belts.
So oversized belt loops on your cargo pants will keep you from wearing out your expensive dressy belts while walking your dog or taking a hike.