KARACHI: The Pakistan Textile Council (PTC) has raised concerns over a slowdown in the country’s export performance, particularly in the textile and apparel sector, which remains a key contributor to foreign exchange earnings.
PTC’s monthly report for July–August 2025 shows total exports at $5.1 billion, reflecting only 0.65% growth compared to the same period last year. Exports in August fell 12.5% year-on-year, with a 10% month-on-month drop, highlighting ongoing volatility in Pakistan’s external trade.
The textile and apparel sector, accounting for roughly 63% of total exports, generated $3.21 billion in July–August, a 10% increase from the previous year. However, August alone saw textile exports decline to $1.53 billion, down 7% year-on-year and 9% month-on-month.
PTC noted sustained challenges in traditional textiles (HS 50–60), where exports fell from $685 million in FY22 to $523 million in FY26. Cotton exports dropped 3.5%, while knitted fabrics declined 32.7%. Value-added textiles (HS 61–63) also showed signs of weakness, with knitwear, non-knit apparel, and made-ups collectively falling 13% month-on-month in August.
Regarding export destinations, the European Union remains Pakistan’s largest market at $1.3 billion, while exports to the United States have stagnated at $878 million over the past five years, reflecting lost competitiveness.
PTC called for immediate structural reforms to stabilize and grow exports. Recommended measures include regionally competitive energy pricing for exporters, liquidity and tax reforms such as automated 72-hour refunds and zero-rating of inputs under the Export Facilitation Scheme, alignment of wages and labour policies with competing economies, and targeted support for cotton and traditional textile sectors.
The council also urged strengthening of financing mechanisms through EXIM Bank, Export Finance Scheme (EFS), and Long-Term Financing Facility (LTFF), alongside establishing a legally backed five-year textile and apparel export strategy with transparent monthly performance monitoring.
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