Moaaz Manzoor

Pakistan’s export performance weakened sharply in November 2025, according to fresh data released by the Pakistan Bureau of Statistics (PBS) on Tuesday, prompting the Pakistan Textile Council (PTC) to call for timely and targeted reforms to stabilise the external sector and restore competitiveness.

PTC said the latest figures point to a continued deterioration in Pakistan’s external trade position, driven by a steep contraction in exports, persistent import pressures and a widening cumulative trade deficit. The council warned that these trends pose “serious challenges for industrial stability, employment and macroeconomic recovery.”

According to PBS, exports in November 2025 dropped to USD 2.398 billion, down 15.8% from October 2025. In rupee terms, exports fell 15.9%, reflecting what PTC described as a broad-based slowdown in demand and persistent domestic cost pressures.

Imports declined 13.7% month-on-month to USD 5.253 billion, but PTC noted that the reduction “was insufficient to offset the export slump.” As a result, the monthly trade deficit stood at USD 2.855 billion, an 11.9% improvement from October, driven mainly by lower imports.

On a year-on-year basis, PTC pointed to a “sharp deterioration.” Compared with November 2024, exports fell 15.35% in dollar terms and 14.45% in rupee terms, while imports rose 5.42% in dollars and 6.69% in rupees. The trade deficit widened 32.8% year-on-year, which PTC said “signals weakening competitiveness, eroding industrial margins and demand-side stress across global markets.”

Five-month cumulative figures showed deeper pressures. During July–November 2025, exports totalled USD 12.84 billion, down 6.39% from USD 13.72 billion a year earlier. Imports during the same period increased 13.26% in dollars and 14.96% in rupees. As a result, the cumulative trade deficit widened by 37.2% to USD 15.47 billion in the first five months of FY26.

PTC said the sustained decline in exports, despite moderate reductions in global freight costs and improved order visibility in competitor markets, reflects “structural challenges facing Pakistan’s export-oriented industries.” These include high energy tariffs, inconsistent power supply, elevated financial costs, exchange-rate volatility, high taxation relative to regional rivals, rising input costs and delayed refund payments that “erode working capital and restrict production cycles.”

The council added that Pakistan’s rising import bill, driven by essential raw materials and capital goods, underscores the need for a coherent industrial and trade policy framework that aligns costs, competitiveness and long-term growth objectives.

PTC urged the government to restore regionally competitive energy pricing, ensure policy continuity, strengthen export financing at viable rates, accelerate refund releases and fast-track the Prime Minister’s Working Groups on Energy, Taxation and Tariffs. It also called for greater investment in productivity enhancements and technology upgrading to boost value-added capacity.

Credit: INP-WealthPk