ISLAMABAD: Pakistan’s textile and clothing sector — the backbone of the country’s export economy — continues to face turbulence as exports fell for the second consecutive month in September, signalling persistent challenges for the industry.
According to the latest trade figures, textile exports dropped 1.99 percent year-on-year, declining to $1.57 billion from $1.61 billion recorded in the same month last year. This follows a sharper 7.34 percent fall in August, raising concerns over the sector’s recovery trajectory.
Despite this dip, cumulative exports for the first quarter of FY26 (July–September) showed modest growth of 5.63 percent, reaching $4.77 billion. The uptick was largely driven by increased exports of yarn and made-up articles, though several key categories continued to underperform.
Detailed data paints a mixed picture — yarn exports surged 21.66 percent, but bedwear, towels, and cotton cloth saw significant declines. Bedwear fell 0.92 percent, towels dropped 5.02 percent, and cotton cloth plummeted 25.32 percent in value compared to last year.
Industry experts attribute this uneven performance to rising production costs, energy shortages, delayed refunds, and supply-side constraints. Exporters warn that Pakistan’s textile competitiveness is being eroded by policy uncertainty and inconsistent incentives, which have left manufacturers struggling to meet international demand amid global competition.
With the textile sector contributing nearly 60 percent of Pakistan’s total exports, stakeholders urge the government to introduce urgent policy reforms, ensure energy cost rationalisation, and facilitate timely tax refunds to help stabilise production and restore growth momentum.
This story has been reported by PakTribune. All rights reserved.