The Pakistan Textile Council (PTC) has voiced deep concern over Pakistan’s weakening export performance, particularly in the textile and apparel sector that remains the backbone of the country’s foreign exchange earnings.
In its latest monthly report (July–August 2025), PTC revealed that Pakistan’s total exports stood at $5.1 billion, showing only 0.65 percent growth compared to last year. However, August 2025 saw a sharp setback, with exports plunging 12.5 percent year-on-year and 10 percent month-on-month.
Textiles and apparel, contributing nearly 63 percent of total exports, recorded $3.21 billion in July–August, up 10 percent on-year. But in August alone, exports fell to $1.53 billion, reflecting a 7 percent yearly decline and a 9 percent monthly drop.
Key concerns highlighted by PTC include:
Traditional textiles (HS 50–60): Persistent decline, falling from $685 million in FY22 to $523 million in FY26. Cotton exports dropped 3.5 percent, while knitted fabrics slumped 32.7 percent.
Value-added textiles (HS 61–63): Long-term resilience but a 13 percent month-on-month dip in August 2025 across knitwear, non-knit apparel, and made-ups.
Export destinations: EU remains the top market at $1.3 billion, but exports to the US have stagnated at $878 million over five years, signaling eroded competitiveness.
Calling the trend “unsustainable,” PTC has urged the government to act swiftly with a set of policy measures: regionally competitive and predictable energy pricing, expedited tax refunds and zero-rated inputs, alignment of wage and labor policies with competitors, targeted support for HS 50–60 sectors, enhanced financing facilities via EXIM Bank, and a legally backed five-year export strategy with monthly KPIs.
“The numbers clearly show Pakistan’s export engine is losing momentum, especially in August 2025 when sharp declines were recorded across major categories,” PTC warned.
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“Without urgent reforms, the country risks losing global market share, jobs, and critical foreign exchange inflows.”
