Sharp fall in June shipments offsets gains in garments and cotton yarn as textile exports reach $17.93 billion
ISLAMABAD: Pakistan’s textile exports posted marginal growth of just 0.26 percent during fiscal year 2025-26, reaching $17.93 billion, as stronger performance in ready-made garments and cotton yarn was largely offset by declines across several key textile segments. A sharp drop in exports during June further weighed on the sector’s overall performance.
According to official trade data, the textile group — Pakistan’s largest export-earning sector — generated $17.933 billion during July–June FY2025-26, compared with $17.887 billion in the corresponding period of the previous fiscal year.
Garments and cotton yarn lead growth
Among the major export categories, ready-made garments emerged as one of the strongest performers, with exports rising 3.87 percent to $4.29 billion, up from $4.13 billion a year earlier.
Cotton yarn exports also recorded robust growth, increasing 12.4 percent to $765.1 million, while exports of other textile materials rose 8.67 percent to $790.9 million.
Exports of raw cotton surged by nearly 199 percent to $2.6 million, although the category continued to account for only a negligible share of Pakistan’s overall textile exports.
Major textile segments remain under pressure
Despite gains in selected categories, several of Pakistan’s traditional textile exports recorded declines during the fiscal year.
Cotton cloth exports fell 7.55 percent to $1.67 billion, while knitwear—the country’s largest textile export category—declined 0.88 percent to $4.97 billion.
Exports of bed wear remained virtually unchanged at $3.11 billion, registering a marginal decline of 0.01 percent.
Meanwhile, towel exports dropped 1.93 percent to $1.06 billion, while exports of tents, canvas and tarpaulin declined 3.81 percent to $120.1 million.
Exports of art, silk and synthetic textiles contracted 11.54 percent to $353.4 million, and made-up articles, excluding towels and bed wear, edged down 0.71 percent to $770.3 million.
June exports witness sharp decline
On a monthly basis, Pakistan’s textile exports suffered a significant setback in June 2026, reflecting weaker demand across most product categories.
Total textile exports fell to $1.27 billion, representing a 22.72 percent decline from $1.64 billion recorded in May 2026. Compared with June 2025, exports were down 16.71 percent.
Among the major categories:
• Ready-made garments exports fell 23.87 percent month-on-month to $315.3 million.
• Knitwear exports declined 18.34 percent to $364.2 million.
• Bed wear exports dropped 26.52 percent to $209.7 million.
• Towel exports plunged 36.77 percent to $66.3 million.
• Cotton cloth exports decreased 23.12 percent to $112.1 million.
• Art, silk and synthetic textiles exports fell 24.05 percent from May.
In contrast, cotton yarn was one of the few segments to record positive monthly growth, with exports increasing 6.62 percent to $64 million.
Outlook remains challenging
The latest trade figures indicate that while Pakistan’s textile sector managed to maintain overall export earnings during FY2025-26, growth remained subdued amid persistent challenges.
Weak global demand, rising international competition and declining shipments in several traditional export categories continue to weigh on the country’s largest export industry, underscoring the need for greater product diversification, value addition and improved competitiveness to sustain export growth.