Knitwear and garments lead Pakistan’s export growth as textile sector shows steady improvement
ISLAMABAD: Pakistan’s textile sector recorded steady growth during the first eleven months of fiscal year 2025-26, with exports rising despite global market challenges and ongoing cost pressures.
According to official trade data, textile exports increased by 1.83 per cent year-on-year, reaching $16.67 billion during the July–May period of FY2025-26.
The performance reflects gradual industrial recovery supported by policy measures, improved production activity and export facilitation initiatives under the Special Investment Facilitation Council (SIFC).
Knitwear and Garments Drive Export Performance
Knitwear remained the largest export category within the textile sector, generating $4.60 billion in export earnings during the period.
Ready-made garments also contributed significantly, with exports reaching $3.97 billion, highlighting sustained international demand for Pakistan’s value-added textile products.
Together, these segments continued to anchor the country’s textile export base, supporting overall foreign exchange inflows.
Cotton Yarn Sees Strong Double-Digit Growth
Cotton yarn exports posted one of the strongest performances among textile sub-sectors, rising 13.35 per cent year-on-year to $701.1 million.
The increase reflects improved demand from global buyers as well as higher production activity in domestic textile mills.
Industry participants said the trend signals early signs of stabilisation in upstream textile manufacturing, which had faced pressure in previous fiscal cycles.
SIFC Measures Support Industrial Momentum
Officials attributed part of the sector’s recovery to reforms and facilitation measures introduced through the Special Investment Facilitation Council (SIFC).
These initiatives have focused on easing investment bottlenecks, improving regulatory coordination and strengthening export-oriented industries, particularly textiles.
Stakeholders believe the improved policy environment has helped restore confidence among exporters and investors.
External Account Stability Remains Key
Pakistan’s textile industry continues to play a central role in the country’s export earnings and employment generation.
Economists say sustained growth in textile exports will remain critical for strengthening the external account, stabilising foreign exchange inflows and supporting broader economic recovery.
Outlook for Textile Sector
While the outlook remains cautiously positive, analysts warn that global demand conditions, energy costs and currency stability will continue to influence export performance.
With textile exports surpassing $16.6 billion in FY2025-26 so far, the sector remains on track to retain its position as Pakistan’s leading export engine.
