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Textile and leather exports rise 5% in Q1 FY2025-26

October 10, 2025

Moaaz Manzoor

Pakistan’s textile and leather sector remained the backbone of the country’s export growth, posting a 5% increase in the first quarter of FY2025-26 to reach $5.046 billion, according to the September 2025 report of the Trade Development Authority of Pakistan (TDAP).

The strong performance underscores the resilience and competitiveness of Pakistan’s textile industry. Bedlinen, knitwear, and ready-made garments posted solid gains, with bedlinen exports rising 6% and men’s apparel surging 25%, driven by robust demand from key markets including the United States, Spain, and Germany.

While overall goods exports eased slightly due to softer global commodity prices, the sustained momentum in textiles highlights the sector’s adaptability and diversification. Pakistani garment manufacturers have been steadily expanding their share in Western markets, supported by cost competitiveness, improved quality standards, and the ability to respond quickly to shifting fashion trends.

Agro and food exports fell 28% year-on-year but are expected to rebound as global commodity prices stabilize and new markets open through trade diplomacy. Officials at the Ministry of Commerce said efforts are underway to modernize agriculture supply chains and strengthen food-processing capabilities to enhance future export potential.

Engineering and manufacturing exports also showed resilience, totaling $1.32 billion in the first quarter. Analysts say this performance points to growing investment in value-added production beyond traditional textile products.

Trade experts believe the consistent growth in textiles demonstrates the manufacturing base’s strength despite global headwinds. “Our exporters are modernizing and finding new niches in technical textiles, sportswear, and sustainable fabrics,” said a Karachi-based textile analyst.

With rising global demand for eco-friendly products, Pakistan is positioning itself as a competitive regional supplier. The TDAP has outlined plans to accelerate export diversification through innovation, branding, and improved logistics, aiming to strengthen the country’s footprint in premium international markets.

Credit: INP-WealthPk