Pakistan’s textile sector has posted a historic performance, with exports reaching $6.39 billion in the first four months of the current fiscal year (July–October 2025), marking a 4% rise compared to $6.14 billion during the same period last year.
Official data shows that October 2025 exports stood at $161 million, slightly lower than September but nearly identical to October 2024, indicating stable market demand.
Production indicators also remained strong. Domestic textile output grew 1.88% in Q1 FY25, with a significant 5.95% jump in September 2025, reflecting improved capacity utilization and stronger order flows.
For the full fiscal year FY25, textile exports climbed to $17.88 billion, up 7.22% from FY24, though still trailing the record $19.3 billion achieved in FY22. Key commodity performance remained positive, with cotton yarn exports rising 7.74% and raw cotton shipments doubling year-on-year.
Industry leaders attribute the export surge to the recovery in global demand, particularly in Europe, alongside Pakistan’s continued benefit from EU GSP+ duty-free access, which has helped boost textile shipments to the bloc by 108% since 2014.
Despite the positive trajectory, experts warn that sustaining growth will require tackling deep-rooted challenges, including high energy tariffs, periodic shortages, outdated machinery, and reliance on low-value products. Expanding into value-added apparel and home textiles, along with diversifying markets beyond the EU and the US, remains critical for long-term resilience.
The latest figures underscore the textile industry’s central role in Pakistan’s economy, where it contributes nearly 60% of total exports and remains a key driver of foreign exchange earnings.
