Pakistan’s textile and apparel exports reached $18 billion during the fiscal year 2025-26, marking their highest level in four years. The sector recorded modest growth of 0.3 percent compared with $17.95 billion in the previous fiscal year, despite declining national exports.
According to the Pakistan Textile Council’s annual export performance report, textile products contributed approximately 60 percent of the country’s total exports. Meanwhile, Pakistan’s overall exports declined by 5.9 percent, falling from $32.04 billion to $30.14 billion.
Value-Added Products Drive Export Growth
The report highlights a growing shift towards value-added textile products, including garments and home textiles. Exports from these categories increased by 1.1 percent to $14.98 billion, representing 83.2 percent of total textile exports.
Woven apparel emerged as a strong performer, recording 3.9 percent growth to reach $4.295 billion. Similarly, exports of home textiles and other made-up articles increased by 0.6 percent to $5.705 billion.
However, knitwear exports declined by 0.7 percent to $4.979 billion. Additionally, raw materials and intermediate textile products recorded a 3.4 percent decline, reaching $3.03 billion, their lowest level in five years.
Textile Industry Faces Growing Challenges
The report also highlighted concerns about declining domestic cotton production, rising production costs and international market competition. These challenges continue to affect the industry’s ability to maintain sustainable export growth.
The European Union remained Pakistan’s largest textile export destination, generating $7.103 billion, followed by the United States at $4.853 billion. The United Kingdom ranked third with exports worth $1.73 billion.
The Pakistan Textile Council has urged the government to reduce taxes, improve energy tariffs, accelerate tax refunds and strengthen domestic cotton production. These measures could help exporters improve competitiveness and sustain Pakistan’s textile export performance.
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