Pakistan Textile Exports Hit $17.93bn Despite June Slump

Pakistan’s textile exports reached $17.93 billion during fiscal year 2025-26, according to figures reported from the Pakistan Bureau of Statistics on Thursday. The data places the country’s largest export-oriented industry back in the spotlight as policymakers, manufacturers and investors assess whether the sector is stabilising or still facing deeper structural pressure.

Despite the sizeable annual export value, the overall picture remained mixed. Total textile exports slipped by 0.26 percent over the fiscal year, showing that Pakistan’s traditional export base continues to face resistance from soft international demand, production costs and uneven performance across major product categories.

The strongest support came from selected value-added and intermediate segments. Exports of other textile products increased by 8.67 percent to $790.8 million, while ready-made garment exports rose by 3.87 percent to $4.288 billion compared with $4.13 billion in the previous fiscal year.

Cotton yarn also recorded a notable improvement, rising 12.40 percent to $765 million from $680 million a year earlier. Raw cotton exports registered a sharp percentage increase of 199 percent, reaching $2.6 million compared with $871,000 in the previous fiscal year, though the value remained comparatively small within the broader textile basket.

However, several core export lines remained under pressure. Exports of textile products excluding towels and bedwear declined by 0.71 percent to $770 million, while knitwear exports fell 0.88 percent to $4.966 billion. Bedwear exports were almost flat, edging down 0.01 percent to $3.11 billion.

The weakness was more visible in other established categories. Towel exports dropped by 1.93 percent to $1.06 billion, cotton cloth exports declined 7.55 percent to $1.67 billion, and exports of tents, canvas and tarpaulin fell by 3.81 percent to $120 million during the fiscal year.

The June performance raised additional concerns. On a year-on-year basis, textile exports fell 16.71 percent in June 2026, standing at $1.267 billion compared with $1.521 billion in June 2025. The monthly decline indicates that the closing stretch of the fiscal year was particularly difficult for exporters.

Textiles remain central to Pakistan’s external accounts because the sector is a major source of foreign exchange, industrial employment and manufacturing activity. Even small movements in textile exports can affect the trade balance, factory operations, cotton-linked supply chains and business confidence in export-heavy cities.

The latest numbers suggest that Pakistan has preserved a large export base but has not yet secured broad-based growth across the industry. The next phase will depend on energy costs, cotton availability, exchange-rate stability, global orders and the ability of manufacturers to move more aggressively into higher-value products.