Moaaz Manzoor

Pakistan’s textile sector posted a mixed performance in January 2026, with exports edging up 3.14% year-on-year to $1,738.803 million, according to the Pakistan Textile Exporters Association (PTEA), even as broader trade pressures persisted.

In its latest trade review, the association noted that January saw improvements in specific export categories. However, it cautioned that structural challenges and rising costs continue to weigh on global competitiveness. It emphasized that a sustained recovery will require a stable operating environment and enhanced cost efficiency across the entire value chain.

Backing its assessment with official data, Pakistan’s total exports in January 2026 reached $3,056 million, compared to $2,951 million during the same month last year—a 3.54% increase. Imports dipped slightly by 0.95% to $5,813 million from $5,869 million, indicating a marginal easing of monthly external pressures.

Textile and clothing exports recorded a 3.14% year-on-year increase in January, hitting $1,738.803 million against $1,685.905 million in January 2025.

According to the association’s segment-wise breakdown, growth was largely concentrated in value-added categories. Bedwear exports rose 6.88%, towel exports increased 14.09%, and readymade garments posted a 9.64% increase. Made-up articles (excluding towels and bedwear) grew by 8.77%, reflecting relatively steady demand in those segments.

However, several major categories remained under pressure. Knitwear exports declined 8.55%, tents, canvas, and tarpaulin fell 18.37%, and art silk and synthetic textiles decreased 8.63%, highlighting an uneven performance across product lines.

On a cumulative basis, broader trade indicators remain strained. During the July–January FY2025-26 period, Pakistan’s total exports fell 7.11% to $18,190 million, down from $19,583 million in the same period last year. Imports during this time rose 9.49% to $40,260 million, continuing to strain the trade balance.

Textile exports for the seven-month period reached $10.904 billion, up from $10.777 billion last year, marking a modest 1.25% increase. Gains were seen in readymade garments (5.66%), bedwear (2.71%), and knitwear (2.14%), while the cotton cloth, art silk, and yarn segments recorded declines.

The association maintained that while January’s selective improvements are encouraging, sustained export growth will depend on higher industrial efficiency, stable input costs, and a predictable policy framework to bolster Pakistan’s position in competitive global markets.

Credit: INP-WealthPk