Moaaz Manzoor

The Pakistan Textile Exporters Association (PTEA) on Tuesday attributed the quarterly export decline to subdued global demand, high production costs, and escalating input prices that have pressured exporters, particularly those in the textile sector, which remains the backbone of Pakistan’s export base.

The PTEA has urged policymakers to focus on reducing input costs, improving the ease of doing business, and ensuring energy price stability to enhance export competitiveness.

Echoing these concerns, the Pakistan Textile Council (PTC) earlier warned that mounting costs and policy uncertainty are eroding the competitiveness of the country’s largest export sector. “This is a wake-up call,” said PTC Chairman Fawad Anwar. “Pakistan’s cost of doing business is becoming unbearable.

Without urgent reforms, we risk further closures of export-oriented units and reduced foreign investment.” The PTC called for alignment of wage and labour policies with regional peers, regionally competitive and predictable energy tariffs, automation of 72-hour tax refunds, expansion of export financing facilities, and policy stability through transparent monitoring.

“These are not demands for subsidies but calls for a level playing field,” the PTC chairman added. Despite the sharp rise in the trade gap in the first quarter of the ongoing fiscal year 2025-26, analysts view the slight month-on-month export increase in September 2025 as a sign of resilience amid difficult conditions.

While the global economic slowdown and soft demand in key markets like the US and EU remain challenges, industry representatives say September’s modest rebound could be a precursor to a gradual recovery if supportive policies and consistent facilitation measures are sustained in the months ahead.

According to PTEA's figures, Pakistan’s exports in September 2025 stood at $2.504 billion, compared to $2.836 billion in the same month of the previous year, reflecting a decline of 11.71%. However, exports increased 3.64% month-on-month in September.

For the July-September quarter, exports totalled $7.603 billion, down 3.83% from $7.906 billion a year earlier. Imports in September rose 14.0% to $5.845 billion, compared to $5.127 billion in September 2024.

On a quarterly basis, imports stood at $16.971 billion, up 13.49% from $14.954 billion. Consequently, the trade deficit widened by 45.83% in September, reaching $3.34 billion compared to $2.29 billion a year earlier. For the quarter, the deficit rose 32.92% to $9.36 billion from $7.04 billion last year.

Credit: INP-WealthPk