Moaaz Manzoor

Pakistan’s textile and apparel exports recorded modest growth during July–November FY26, but disaggregated data indicates weakening monthly momentum and rising pressure across key segments of the value chain, reports Wealth Pakistan. According to figures compiled by the Pakistan Textile Council (PTC), textile and clothing exports reached USD7.84 billion during the first five months of FY26, posting a 2.8% year-on-year increase.

However, the cumulative growth masks a noticeable slowdown in monthly performance, particularly toward the end of the review period. In November 2025, total textile and apparel exports stood at USD1.43 billion, reflecting a 2.7% year-on-year decline and a sharp 11.7% month-on-month contraction compared with October. Industry observers said the downturn highlights emerging stress stemming from cost pressures, softening external demand and reduced pricing competitiveness in key export markets.

Traditional textiles, comprising raw and semi-processed products under chapters 50–60, remained under pronounced pressure. Exports from this segment amounted to USD1.28 billion during July–November FY26, marking a 7.7% year-on-year decline. The weakness intensified in November, when traditional textile exports fell to USD233 million, down 18.5% year-on-year and 8% month-on-month, underscoring persistent stress in upstream segments.

Apparel and made-ups under chapters 61–63 continued to lend relative support to overall export performance but also showed signs of deceleration. The segment recorded exports of USD6.56 billion during July–November FY26, up 5% year-on-year. However, November exports declined to USD1.20 billion, registering a 0.5% year-on-year drop and a 13% month-on-month fall, indicating that even value-added categories are facing demand headwinds.

Within home textiles (chapter 63), exports totaled USD2.47 billion during the period. Key product lines showed weakening trends, with cotton bed linen (HS 6302.3190) recorded at USD176 million and cotton bed covers (HS 63023130) at USD169 million. In knitted apparel (chapter 61), exports stood at USD2.30 billion, including knitted T-shirts and vests (HS 61099090) at USD132 million and knitted gloves and mittens (HS 61161000) at USD97 million.

Woven apparel (chapter 62) exports amounted to USD1.79 billion, with cotton men’s suits, jackets and ensembles (HS 6203.2200) declining to USD714 million from USD872 million. The PTC noted that while headline export numbers show modest growth, persistent monthly declines and erosion in core product lines signal rising cost pressures and weakening competitiveness.

The council warned that these trends pose risks to employment, capacity utilization and future export growth. To sustain export momentum, the PTC stressed the need for urgent policy measures, including aligning the exchange rate with market fundamentals, ensuring regionally competitive energy tariffs, improving access to affordable financing and rationalizing the tax regime to ease pressure on exporters.

Credit: INP-WealthPk