ISLAMABAD, 19 November 2025 (Wealth Pakistan): Pakistan’s textile industry faced continued pressure in October as exports dropped for the third straight month. The Pakistan Textile Exporters Association (PTEA) said the sector is passing through a difficult phase. According to the Monthly Trade Report for October 2025, the month showed a small month-on-month recovery but failed to reverse the broader downward trend, report Wealth Pakistan.
Exports decline despite slight monthly recovery
Textile exports fell 0.57 percent to $1.616 billion in October 2025, down from $1.625 billion in October 2024. However, exports improved 2.78 percent from September to October, giving only limited relief. PTEA noted that October’s decline extended a volatile pattern. The sector had surged over 30 percent in July, but weak global demand and domestic challenges have kept overall performance unstable.
Mixed performance across textile categories
Export data for October showed a mixed trend. Cotton yarn exports increased 3.34 percent in quantity, but their value slipped 4.57 percent. Cotton cloth exports dropped 7.86 percent in value. Knitwear rose 20.76 percent in quantity but fell 2.02 percent in value. Bedwear exports increased 5.93 percent in value, while towel exports declined 5.01 percent. Readymade garments grew 2.45 percent in value.
Overall, Pakistan’s total exports in October reached $2.848 billion. This was a 4.48 percent drop from $2.982 billion recorded in October last year.
July–October performance shows mild gains
During July to October of FY2025-26, textile exports increased 3.99 percent to $6.391 billion, compared with $6.146 billion a year earlier. Several categories recorded growth. Knitwear rose 8.23 percent, bedwear grew 6.94 percent and readymade garments increased 5.11 percent. Made-up articles also grew 4.17 percent.
However, major segments continued to fall. Towel exports slipped 0.29 percent. Cotton cloth dropped 12.75 percent. Art, silk and synthetic textiles declined 0.98 percent. According to PTEA, the high cost of doing business remains a major problem, especially when compared with regional competitors.
Energy prices, liquidity issues and costs hurt competitiveness
The report pointed to three main challenges. Energy remains the biggest burden. PTEA again called for energy tariff rationalization and a new electricity package. It also demanded gas levy reforms and recognition of Combined Heat and Power (CHP) systems as essential for production. In addition, PTEA urged the government to end cross-subsidies placed on the industry.
Liquidity shortages remain another pressure point. Exporters still await the release of several refunds, including sales tax, income tax, duty drawback and Duty Drawback of Taxes (DDT). PTEA said income tax rates for exporters should match the rates applied to domestic businesses to ease cashflow problems.
PTEA warns of widening trade risks
PTEA also warned that Pakistan’s growing trade imbalance poses long-term risks. The association noted that global opportunities exist, but Pakistan must improve its competitiveness. It urged policymakers to restore investor confidence and address structural issues. According to PTEA, ignoring high production costs, funding shortages and rising competitive pressures may push the textile sector into deeper contraction. The association stressed that the economy cannot afford further strain at a time when export-led growth is crucial.