Pakistan’s textile exports rose by 18pc year-on-year (YoY) in October 2024, reaching $1.6bn, according to recent data from Topline Research. However, month-on-month (MoM) exports fell by 2pc, reflecting the sector’s ongoing volatility. This brings total textile exports for Q1FY25 to $4.5bn, marking a 10pc YoY increase compared to the same period last year.
The export growth was driven by market stability, shifting demand from Bangladesh due to supply disruptions, and the lingering effects of a strong cotton crop. Additionally, a stable Pakistani rupee against the US dollar supported export competitiveness.
In terms of product segments, value-added textiles contributed 73pc to total exports, with garments, knitwear, and bedwear leading the charge. Garment exports rose by 23.17pc in the first quarter, with knitwear up 14.13pc and bedwear climbing by 13.31pc. However, yarn exports saw a steep 48.45pc decline, indicating persistent challenges within basic textile segments.
The data from Pakistan Bureau of Statistics (PBS) corroborates these trends, showing a nearly 9.51pc YoY rise in textile and clothing exports for the first quarter. This surge was despite earlier concerns over taxation measures implemented this fiscal year, which many believed would hinder the sector’s competitiveness.
Raw cotton imports also rose by 21.17pc YoY in Q1FY25, suggesting an increasing reliance on imported inputs to sustain production levels. Meanwhile, synthetic fiber imports dropped by 19.65pc, reflecting shifts in the textile sector’s sourcing strategies.
However, the industry faces long-term structural issues. Textile exporters have noted that, despite having a $25bn installed capacity, exports have been relatively stagnant over the last two years. This underlines the need for reforms to fully unlock the sector’s potential and compete with regional rivals.
Looking forward, experts warn that Pakistan’s textile growth may slow in the second half of FY25 due to a weaker projected cotton crop, though ongoing demand shifts from Bangladesh and currency stability could offer some cushion. The government’s support will be crucial in navigating these challenges and sustaining the sector’s upward momentum.
