Pakistan’s textile exports posted a modest but significant recovery during the first 10 months of FY2025-26, signaling resilience in the country’s largest export-oriented industry despite continued global economic uncertainty, rising import costs, and regional geopolitical pressures.
According to data released by the Pakistan Bureau of Statistics, textile and apparel exports increased by 1.29 percent year-on-year to USD 15.025 billion during July–April FY2025-26, compared to USD 14.834 billion recorded in the same period of the previous fiscal year.
The growth was mainly driven by value-added textile segments, particularly ready-made garments, knitwear, and bedwear, reflecting sustained international demand for Pakistan’s apparel products in key export markets including the United States, the European Union, and the Middle East.
Ready-made garment exports rose by 4.85 percent to USD 3.558 billion, while knitwear exports climbed to USD 4.156 billion. Bedwear exports also maintained positive momentum, increasing by 1.85 percent to USD 2.617 billion during the review period.
Cotton yarn exports surged 11.29 percent to USD 641 million, indicating improved spinning sector activity and stronger overseas demand for yarn products.
Exports of made-up textile articles excluding towels and bedwear also showed steady improvement, rising to USD 654.59 million, while exports categorized as “other textile materials” increased by more than 8 percent to USD 660 million.
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Raw cotton exports recorded an exceptional jump of over 199 percent, although the export volume remained relatively small in absolute terms. Analysts believe the improvement in value-added textile exports reflects Pakistan’s continued shift toward higher-margin apparel products instead of relying heavily on low-value raw textile shipments.
However, the sector’s recovery remained uneven, with several traditional textile categories continuing to face pressure due to weak global demand, price competition, and changing sourcing patterns among international buyers.
Cotton cloth exports declined by 8.79 percent to USD 1.414 billion, while towel exports slipped by 1.43 percent to USD 890 million. Exports of yarn other than cotton yarn also dropped by 4.61 percent.
Synthetic and art silk textile exports remained under pressure as global buyers increasingly shifted toward cost-competitive suppliers from other Asian markets.
Despite these challenges, April 2026 emerged as a particularly strong month for Pakistan’s textile sector. Textile exports during the month rose by more than 21 percent year-on-year to nearly USD 1.48 billion, compared to around USD 1.22 billion in April 2025.
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On a month-on-month basis, exports also increased by over 11 percent from March 2026 levels, indicating improving export orders and stronger shipment activity toward the end of the fiscal period.
Industry observers described the April performance as one of the strongest monthly recoveries in recent years amid signs of stabilization in global retail demand.
Pakistan’s textile sector, which contributes nearly 60 percent of the country’s total exports and employs millions of workers directly and indirectly, has been facing multiple structural challenges over the last two years.
Exporters have struggled with high energy tariffs, currency volatility, rising financing costs, and supply chain disruptions. At the same time, increased competition from regional exporters such as Bangladesh, Vietnam, and India has intensified pressure on Pakistani manufacturers to improve efficiency and value addition.
Industry representatives have repeatedly urged the government to introduce stable energy pricing, faster tax refunds, and export facilitation measures to maintain competitiveness in international markets.
The broader external trade picture, however, continued to raise concerns for the country’s economy. Pakistan’s overall exports during July–April FY2025-26 fell by 6.26 percent to USD 25.209 billion, while imports increased by 7.33 percent to USD 57.408 billion during the same period.
In April 2026 alone, imports jumped by more than 32 percent month-on-month to USD 6.763 billion, widening the country’s trade deficit significantly. The cumulative trade gap during the first 10 months of the fiscal year reached over USD 32 billion, underscoring Pakistan’s continued dependence on imports and the critical importance of textile exports in supporting foreign exchange earnings.
Economists believe Pakistan’s textile industry still has strong long-term export potential if policy stability, infrastructure improvements, and investment in modern manufacturing technologies continue.
Growing global demand for sustainable sourcing, recycled textiles, and value-added apparel could also create new opportunities for Pakistani exporters in the coming years. However, sustained growth will depend on the country’s ability to maintain competitive production costs, diversify export destinations, and move further up the global textile value chain.
