Pakistan Textile Council Raises Concerns Over Export Performance

Strategic Insights -

Pakistan's textile and apparel sector, which accounts for approximately 63% of total exports, has shown signs of weakness in recent months. The sector generated $3.21 billion in exports during July-August 2025, a 10% increase from the same period last year. However, exports in August alone declined by 7% year-on-year and 9% month-on-month, highlighting ongoing challenges in Pakistan's external trade. The Pakistan Textile Council (PTC) has expressed concerns over the slowdown in export performance and has called for immediate structural reforms to stabilize and grow exports.

Key Takeaways:

  • The Pakistan Textile Council (PTC) has raised concerns over a slowdown in the country's export performance, with total exports at $5.1 billion in July-August 2025, reflecting only 0.65% growth compared to the same period last year.
  • The textile and apparel sector, accounting for roughly 63% of total exports, generated $3.21 billion in July-August, a 10% increase from the previous year, but exports in August alone saw a decline of 7% year-on-year and 9% month-on-month.
  • Sustained challenges exist in traditional textiles (HS 50-60), where exports fell from $685 million in FY22 to $523 million in FY26, with cotton exports dropping 3.5% and knitted fabrics declining 32.7%.
  • Value-added textiles (HS 61-63) also showed signs of weakness, with knitwear, non-knit apparel, and made-ups collectively falling 13% month-on-month in August.
  • The European Union remains Pakistan's largest export market at $1.3 billion, while exports to the United States have stagnated at $878 million over the past five years.
  • PTC recommended immediate structural reforms such as regionally competitive energy pricing, liquidity and tax reforms, alignment of wages and labour policies, and targeted support for cotton and traditional textile sectors.
  • The council also urged strengthening of financing mechanisms through EXIM Bank, Export Finance Scheme (EFS), and Long-Term Financing Facility (LTFF), alongside establishing a five-year textile and apparel export strategy with transparent monthly performance monitoring.

Statistics:

  • $5.1 billion: Total exports in July-August 2025, reflecting only 0.65% growth compared to the same period last year.
  • 63%: The percentage of total exports accounted for by the textile and apparel sector.
  • $3.21 billion: Exports generated by the textile and apparel sector in July-August, a 10% increase from the previous year.
  • 7%: Decline in textile exports in August year-on-year.
  • 9%: Decline in textile exports in August month-on-month.
  • $685 million: Exports in traditional textiles (HS 50-60) in FY22.
  • $523 million: Exports in traditional textiles (HS 50-60) in FY26.
  • 3.5%: Decline in cotton exports.
  • 32.7%: Decline in knitted fabrics.
  • 13%: Decline in value-added textiles (HS 61-63) month-on-month in August.
  • $1.3 billion: Exports to the European Union, the largest export market.
  • $878 million: Exports to the United States over the past five years, reflecting lost competitiveness.

Sources:

  • "Pakistan Textile Council's monthly report for July-August 2025"
  • "Pakistan's Textile and Apparel Sector: Challenges and Opportunities" (publication date not specified)
  • "Pakistan Textile Council urges structural reforms to stabilize and grow exports" (publication date not specified)