Pakistan’s textile exports grew by 7.22% in the fiscal year 2024-25, reaching $17.88 billion, up from $16.68 billion last year. This positive growth comes despite challenges like rising inflation, high energy tariffs, political instability, and weak global demand.
The increase was largely driven by value-added products such as knitwear (up 14.46%), readymade garments (16.35%), and bedwear (10.56%), while yarn exports declined due to shifting demand patterns.
Many industry players were initially concerned about a decline, but improved orders from Europe and the Middle East helped the sector avoid losses. Exporters shifted focus from raw materials to finished goods, which offer better profit margins and customized options for buyers.
Economists highlight that while the growth is encouraging, structural problems remain. High energy costs, multiple taxes, and currency instability continue to challenge competitiveness. External factors like shipping disruptions, geopolitical tensions in the Middle East and South Asia, and uncertain US trade policies also affected export dynamics.
Looking forward, the industry hopes to reach $20 billion in textile exports by FY26 or FY27 if macroeconomic conditions stabilize and power tariffs are rationalized. However, many remain cautious, citing ongoing inflation and lack of clear government policy as major hurdles.