KARACHI, Monday, September 21, 2026: Pakistan’s textile and apparel exports reached $18 billion in fiscal year 2025-26, their highest level in four years, even as the industry faces mounting pressure from declining cotton production and signs of weaker export orders.
The Pakistan Textile Council (PTC), in its first annual Export Performance Report, said textile and apparel exports increased by 0.3% during FY2025-26 to reach $18 billion.
The modest increase came despite a 5.9% decline in Pakistan’s overall exports, which fell to $30.14 billion during the year. As a result, textiles accounted for nearly 60% of the country’s total exports.
Apparel, home textiles drive growth
The report showed that export growth was driven entirely by apparel and home textile made-ups.
Exports under Chapters 61 to 63, covering apparel and home textile made-ups, rose 1.1% to $14.98 billion and represented 83.2% of total textile exports. Their share stood at 77% in FY2021-22.
In contrast, exports of raw materials and intermediate textile products declined 3.4% to $3.03 billion, their lowest level in five years.
Non-knit apparel emerged as a strong performer, with exports rising 3.9% to a record $4.295 billion.
Within the category, exports of men’s cotton trousers increased by 19%, while exports of women’s cotton trousers jumped 54%.
Home textiles and made-ups remained the largest single export chapter at $5.705 billion, although growth was limited to 0.6%.
Knitwear exports, meanwhile, slipped 0.7% to $4.979 billion.
EU remains Pakistan’s biggest textile market
The European Union remained Pakistan’s largest textile export destination, accounting for $7.103 billion in shipments. However, exports to the bloc declined from $7.248 billion in the previous period.
Textile exports to the United States reached $4.853 billion, while shipments to the United Kingdom stood at $1.730 billion.
Exports to China increased to $644 million, while shipments to Bangladesh remained broadly stable at around $620 million. Growth in both markets was primarily driven by cotton yarn and fabric, according to the report.
Cotton production falls to three-decade low
Pakistan Textile Council Chief Executive Officer Muhammad Hassan Shafqat said the industry’s ability to post even modest export growth demonstrated its capacity to remain competitive internationally.
He warned, however, that the availability of raw materials, particularly cotton, remained a serious concern for the industry.
Pakistan produced only 5.5 million bales of cotton during the previous season, according to the report, marking the lowest output in three decades.
By comparison, cotton production had reached a peak of 14.8 million bales in 2011-12.
The growing gap between domestic demand and production is now being filled on a sustained basis through imported cotton, increasing the industry’s dependence on overseas raw materials.
June exports signal weaker start to FY2026-27
Despite the four-year high in annual exports, the report highlighted signs of weakness heading into the new fiscal year.
Textile and apparel exports stood at $1.27 billion in June 2026, falling 17% year-on-year and 23% compared with the previous month.
The council said the decline pointed to weaker order flows heading into FY2026-27.
Textile Council proposes reforms
The PTC has presented 11 phased recommendations across six areas aimed at strengthening Pakistan’s export competitiveness.
The proposals include reducing corporate income tax to 15%, accelerating and automating sales and income tax refunds, ensuring regionally competitive energy prices and reliable supplies, improving financing and expanding access to credit for small and medium-sized enterprises.
The council has also called for greater facilitation of indirect exporters, long-term continuity of the European Union’s GSP Plus framework and efforts to pursue free trade agreements with the United States and United Kingdom.
Other recommendations include competitive freight rates, shorter delivery times and greater capacity for the Pakistan National Shipping Corporation.
For the cotton sector, the council proposed an integrated national strategy covering quality seeds, farmer digitalisation and traceability.
The recommendations will form the basis of the Pakistan Textile Council’s policy advocacy agenda for FY2026-27 as the industry seeks to build on its $18 billion export performance while addressing raw-material and competitiveness challenges.