Pakistan’s textile and apparel exports suffered a broad-based decline across its three largest markets, the European Union, the United States and the United Kingdom, during the first half of FY26, signalling a deepening competitiveness crisis for the country’s largest export sector.
Chairman of Pakistan Textile Council (PTC) Fawad Anwar said the downturn was not confined to a single product or destination but reflected systemic weaknesses in the cost of doing business, according to a statement issued on Wednesday. Textiles and apparel, Pakistan’s biggest export-oriented industry, face immediate risks to foreign exchange earnings, employment and industrial capacity utilisation, he warned.
An analysis of export trends for knitted apparel, woven apparel and home textiles shows a steady weakening through the half year, with November and December emerging as the lowest point. The decline was visible across all major categories and markets simultaneously.
“The data confirms this is not a demand-side or market-access issue. It is fundamentally a cost-of-doing-business and competitiveness crisis,” Anwar said. “When exports decline across all major product categories and markets simultaneously, the problem is systemic.”
He noted that while Pakistan’s exports weakened, competitor economies intensified state support for industry. Despite trade tensions, China recorded a trade surplus of nearly one trillion dollars in the first eleven months of 2025, supported by diversification and sustained industrial backing. India approved a five-billion-dollar export support package, while Vietnam introduced tax relief, improved access to industrial land and targeted incentives.
“Against this backdrop, Pakistan’s exporters are being asked to compete globally with structurally higher energy costs, fragmented taxation, delayed refunds, and policy unpredictability,” Anwar said.
