ISLAMABAD, April 16, 2026 — Pakistan’s textile exports declined 7% year-on-year in March 2026, hit by shipping disruptions following the closure of the Strait of Hormuz amid escalating tensions in the Middle East, official data showed on Thursday.
Exports of textile products — the country’s largest foreign exchange earner — stood at $1.33 billion in March, down from $1.43 billion in the same month last year, according to the Pakistan Bureau of Statistics (PBS). On a month-on-month basis, however, shipments rose 1.36% from $1.31 billion in February.
The decline comes against the backdrop of heightened regional instability after the United States and Israel launched strikes on Iran on February 28, with hostilities continuing through March. The closure of the Strait of Hormuz — a key global shipping route — disrupted maritime trade flows, particularly affecting Gulf-bound cargo.
Analysts said the Gulf region represents a major destination for Pakistani textile exports, and the disruption of shipping routes significantly impacted order fulfillment and delivery schedules.
“The blockade of the Strait of Hormuz created logistical bottlenecks, delaying shipments and raising freight costs,” said an industry analyst, adding that exporters faced difficulties in routing consignments through alternative channels.
The March decline has offset earlier gains in the current fiscal year. Cumulative textile exports for the first nine months (July–March) of fiscal year 2025–26 stood at $13.55 billion, slightly lower than $13.61 billion recorded in the same period last year.
Industry representatives expressed cautious optimism that a recent ceasefire between the United States and Iran could ease tensions and restore normal shipping operations, supporting a recovery in exports.
However, they warned that the sector continues to face structural challenges, including high energy costs, taxation issues and regulatory bottlenecks, which have eroded competitiveness.
Textile exporters urged the government to prioritize the sector, describing it as the backbone of Pakistan’s export economy, and called for measures to reduce electricity tariffs and improve the ease of doing business.
Any prolonged disruption in global trade routes could further strain Pakistan’s external sector, analysts said, as the country remains heavily reliant on textiles for export earnings.