KARACHI: Pakistan’s textile and apparel exports rose 0.3% to $18 billion in fiscal year 2025-26, reaching their highest level in four years, according to the Pakistan Textile Council’s first annual Export Performance Report.
The increase came despite a 5.9% decline in Pakistan’s overall exports, which fell to $30.14 billion during the fiscal year. Textiles accounted for nearly 60% of the country’s total exports.
The report said the growth in textile exports was driven entirely by apparel and home textiles and made-ups. Exports under Chapters 61 to 63 rose 1.1% to $14.98 billion, accounting for 83.2% of total textile exports, compared with 77% in fiscal year 2021-22.
Exports of raw materials and intermediate textile products declined 3.4% to $3.03 billion, their lowest level in five years.
Non-knit apparel exports increased 3.9% to a record $4.295 billion. Exports of men’s cotton trousers rose 19%, while women’s cotton trousers increased 54%.
Home textiles and made-ups remained the largest single textile export category at $5.705 billion, although growth was limited to 0.6%. Knitwear exports declined 0.7% to $4.979 billion.
The European Union remained Pakistan’s largest textile export market at $7.103 billion, down from $7.248 billion previously. Textile exports to the United States reached $4.853 billion, while exports to the United Kingdom stood at $1.730 billion.
Exports to China increased to $644 million, while those to Bangladesh remained broadly stable at about $620 million. The report attributed the increase in exports to China and Bangladesh mainly to cotton yarn and fabric.
Pakistan Textile Council CEO Muhammad Hassan Shafqat said the modest growth in textile exports demonstrated the sector’s ability to remain globally competitive, but warned that the availability of raw materials, particularly cotton, remained a concern.
He said cotton production stood at just 5.5 million bales in the latest season, the lowest level in three decades, compared with a record 14.8 million bales in 2011-12. The shortfall is increasingly being met through imports, according to the report.
Textile and apparel exports stood at $1.27 billion in June 2026, down 17% from a year earlier and 23% from the previous month. The decline indicated weaker order flows at the start of fiscal year 2026-27, the report said.
The Pakistan Textile Council proposed 11 measures across six areas to improve the sector’s export competitiveness. The recommendations include reducing corporate income tax to 15%, automating and speeding up sales and income tax refunds, ensuring competitive and reliable energy supplies, improving access to financing and making credit more accessible to small and medium-sized enterprises.
The council also recommended facilitating indirect exporters, ensuring the long-term continuity of GSP+ benefits, pursuing free trade agreements with the United States and United Kingdom, securing competitive freight rates, reducing transit times and strengthening the capacity of Pakistan National Shipping Corp.
For the cotton sector, the council called for an integrated national strategy focused on quality seeds, farmer digitalization and traceability.
The council said the recommendations would form the basis of its policy advocacy agenda for fiscal year 2026-27.