Pakistan’s Textile Exports Slightly Increase in July–February FY26 Amid Monthly Slowdown

Pakistan’s textile exports during July–February of FY2025–26 recorded a modest increase of $32 million, or 0.3%, reaching $12.249 billion compared with the same period last year, according to the “Trade Outlook of Pakistan – July–February 2025–26,” compiled by the Pakistan Textile Council (PTC). Despite this slight year-on-year growth, the sector showed signs of slowing on a monthly basis, with textile shipments in February 2026 declining by $102 million, or around 7%, compared with January, registering exports at $1.315 billion.

PTC data indicates that the textile sector has maintained relative stability over the first eight months of the fiscal year, but the monthly slowdown highlights challenges in sustaining export momentum amid changing global demand patterns. Analysts note that fluctuations in key export markets and domestic production constraints could be contributing to the slowdown, signaling the need for targeted strategies to support competitiveness and market diversification.

Beyond textiles, other sectors showed mixed performance during the same period. Agriculture and food exports fell sharply by 32% to $3.58 billion compared with the previous year. Manufacturing and energy exports increased marginally by 0.2% to $3.995 billion, while mining sector exports saw a more substantial rise of 22% to $567 million. Geographically, exports to the Middle East grew by 7% to $2.37 billion, shipments to the United States rose by 2% to $3.97 billion, and South American exports increased by 11%. However, several other markets recorded declines, including textile exports to the European Union, which fell 2% to $6.01 billion, and the United Kingdom, which dropped 3%. Exports to ASEAN countries decreased by 44%, while shipments to Central Asian Republics and Afghanistan fell 53%. South Asian exports declined 18%, and Africa saw an 11% decrease.

Broader trade data from the Pakistan Bureau of Statistics (PBS) reflects mounting pressure on the trade balance. Total exports for July–February FY26 stood at $20.462 billion, down 7.3% from $22.073 billion during the same period last year. Imports, in contrast, rose by 8.06% to $45.504 billion from $42.110 billion, widening the trade deficit to approximately $25.04 billion compared with $20.04 billion in the previous year.

On a year-on-year basis, February 2026 exports dropped 8.76% to $2.272 billion from $2.490 billion in February 2025. Imports also declined slightly by 1.61% to $5.253 billion. Month-on-month, February exports fell 25.63% from $3.055 billion recorded in January 2026, while imports decreased 9.51% from $5.805 billion in the previous month.

The data suggests that while Pakistan’s textile sector remains a cornerstone of the country’s export economy, external factors and fluctuating demand across key markets are creating challenges in sustaining growth. Industry observers emphasize the importance of policy support, competitive pricing, and market diversification to counter declining shipments in certain regions. Maintaining steady export growth will be crucial for mitigating the widening trade deficit and supporting Pakistan’s overall economic stability during the remainder of FY2025–26.

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