ISLAMABAD: Pakistan’s export performance has taken a worrying turn, with August 2025 recording double-digit declines across key categories, raising serious concerns for the country’s fragile foreign exchange position.
According to the Pakistan Textile Council’s (PTC) Monthly Report on Textile & Apparel Exports (July–August 2025), total exports stood at $5.1 billion, showing only marginal growth of 0.65% compared to the same period last year. However, the performance in August alone was far more alarming, as exports fell by 12.5% year-on-year and by 10% month-on-month, underscoring persistent volatility in external trade.
The textile and apparel sector, which makes up nearly 63% of Pakistan’s total exports, generated $3.21 billion during July–August 2025, reflecting a 10% year-on-year increase. But this momentum failed to hold in August, when textile and apparel exports plunged to $1.53 billion, marking a 7% decline compared to the same month last year and a 9% fall against July. Traditional textiles, grouped under HS codes 50–60, have been facing a long-term downward trend, shrinking from $685 million in FY22 to $523 million in FY26 Within this segment, cotton exports dropped 3.5% while knitted fabrics fell sharply by 32.7%. The value-added segment, covering HS 61–63 and generally considered more resilient, also reported declines in August as knitwear, non-knit apparel, and made-ups collectively dropped 13% on a monthly basis.
The report also noted shifts in export destinations. While the European Union remained the largest market with purchases worth $1.3 billion, exports to the United States have shown little progress, stagnating at \$878 million for the past five years, a trend the Council described as evidence of eroded competitiveness.
In light of these developments, the Pakistan Textile Council has expressed deep concern, warning that the country’s current export trajectory is unsustainable without immediate structural reforms. It further recommended targeted support for traditional subsectors such as cotton and spinning, improvements in cotton quality, and reduction of input costs.
The Council also stressed the need to expand financing facilities through the strengthening of EXIM Bank and greater access to the Export Finance Scheme (EFS) and Long-Term Financing Facilities (LTFF). Most importantly, it called for policy stability through a legally backed five-year textile and apparel export strategy, monitored transparently with monthly performance indicators.
“The numbers clearly show that Pakistan’s export engine is losing momentum, particularly in August 2025 where sharp declines were recorded across key categories,” the PTC stated. “The government must act urgently to implement competitive policies and remove structural bottlenecks if Pakistan is to safeguard its global market share, protect jobs, and sustain foreign exchange inflows.”
