KARACHI, September 21: Pakistan’s textile and apparel exports rose to $18 billion in fiscal year 2025-26, reaching their highest level in four years despite only marginal annual growth, according to the Pakistan Textile Council’s first annual Export Performance Report.
The sector’s exports increased 0.3 percent during the year, while Pakistan’s overall exports fell 5.9 percent to $30.14 billion. As a result, textiles accounted for nearly 60 percent of the country’s total exports.
The report showed that growth was driven primarily by apparel and home textile made-ups. Exports under Chapters 61 to 63 rose 1.1 percent to $14.98 billion, increasing their share of total textile exports to 83.2 percent from 77 percent in fiscal year 2021-22.
Non-knit apparel exports reached a record $4.295 billion after growing 3.9 percent. Men’s cotton trouser exports increased 19 percent, while women’s cotton trouser exports posted a 54 percent increase.
Home textiles and made-ups remained the largest single textile export category at $5.705 billion, although its growth was limited to 0.6 percent. Knitwear exports, meanwhile, declined 0.7 percent to $4.979 billion.
The report highlighted a contrasting trend in raw materials and intermediate products, whose exports dropped 3.4 percent to $3.03 billion, the lowest level in five years.
The European Union remained Pakistan’s largest textile export market at $7.103 billion, although exports to the bloc declined from $7.248 billion. Shipments to the United States rose to $4.853 billion, while exports to the United Kingdom stood at $1.730 billion.
Exports to China increased to $644 million and those to Bangladesh remained broadly stable at around $620 million, with growth in both markets mainly supported by cotton yarn and fabric.
Pakistan Textile Council Chief Executive Officer Muhammad Hassan Shafqat said the modest increase demonstrated the sector’s ability to remain competitive in global markets, but warned that the availability of raw materials, particularly cotton, remained a major concern.
He said Pakistan produced only 5.5 million bales of cotton in the latest season, the lowest level in three decades, compared with a peak of 14.8 million bales in 2011-12. The resulting shortfall is increasingly being met through imports, he added.
The report also pointed to weaker export activity at the end of the fiscal year. Textile and apparel exports stood at $1.27 billion in June 2026, down 17 percent year-on-year and 23 percent from the previous month, indicating weaker order flows at the beginning of fiscal year 2026-27.
To strengthen export competitiveness, the Pakistan Textile Council has proposed 11 measures across six areas. Its recommendations include reducing corporate income tax to 15 percent, automating and speeding up sales and income tax refunds, ensuring competitive and reliable energy supplies, improving access to financing for exporters and SMEs, and facilitating indirect exporters.
The council also called for long-term continuity of GSP Plus preferences, efforts toward free trade agreements with the United States and United Kingdom, competitive freight rates, shorter transit times and greater capacity for the Pakistan National Shipping Corporation.
For the cotton sector, the council recommended a coordinated national strategy covering quality seeds, farmer digitalization and traceability. It said the recommendations would form the basis of its policy advocacy agenda for fiscal year 2026-27.
