Pakistans textile exports struggle as rising costs, regional conflicts threaten growth

According to Dawn, data released by the Pakistan Bureau of Statistics (PBS), textile and clothing exports increased by 5.26 per cent to USD 5.026 billion during July-September 2026, compared with USD 4.775 billion in the corresponding period last year. However, the limited growth highlights the mounting challenges confronting one of Pakistans key export-generating industries.

Exporters have warned the government that the sector could face a further slowdown in the second quarter unless immediate corrective steps are introduced. Higher input costs have reportedly weakened Pakistans ability to compete with rival textile-producing countries, while external disruptions have affected shipments and market access.

Two major developments have added to the pressure on exporters. Trade with Afghanistan has remained suspended since October 2025, disrupting commercial activity across the border. Meanwhile, textile shipments to the Middle East have declined amid the ongoing regional conflict, with the United Arab Emirates among the affected markets.

These developments have further complicated the outlook for an industry already struggling with cost pressures. PBS figures indicate that export performance varied across product categories. Readymade garment exports recorded a stronger performance, increasing 15.69 per cent in value and 17.38 per cent in volume during the first quarter.

Knitwear exports rose 4.14 per cent in value, although quantities declined by 0.46 per cent. Bedwear exports also weakened, falling 0.07 per cent in value and 0.71 per cent in quantity, as highlighted by Dawn.

Meanwhile, Pakistans petroleum import expenditure continued to climb, adding pressure to the countrys external account. The oil import bill increased 6.50 per cent to USD 4.02 billion in the July-September quarter, against USD 3.77 billion in the same period last year, as reported by Dawn. (ANI)