Tuesday, December 23, 2025
Tuesday, December 23, 2025
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HomePakistanTextile Industry Outlook: Domestic Challenges Limit Export Potential

Textile Industry Outlook: Domestic Challenges Limit Export Potential

The garment sector in Bangladesh is under increasing pressure, as leaders from multiple export bodies report that international orders are being diverted due to political unrest and disruptions in gas and electricity supply. Meanwhile, Pakistan has struggled to capitalize on this opportunity, as its spinning sector faces serious challenges, including high taxation, liquidity constraints, slow yarn sales, delayed payments, rising energy costs, and limited availability of quality local cotton, which reduces its competitiveness in global markets.

In October 2025, Pakistan’s textile exports recorded a decline for the third consecutive month on a year-on-year basis, highlighting both sluggish international demand and domestic production challenges. Data from the first four months of FY2025–26 (July–October) indicate a 4.39% increase in textile exports, reaching USD 6.42 billion, compared to USD 6.15 billionduring the same period last year.

However, October 2025 exports fell 0.61% year-on-year, despite a 2.53% month-on-month increase:

  • October 2025: USD 1.62 billion
  • October 2024: USD 1.63 billion
  • October 2023: USD 1.44 billion
  • October 2022: USD 1.36 billion
  • October 2021: USD 1.60 billion

Industry experts attribute the recent decline to reduced international demand, higher domestic production costs, and elevated energy prices, which have collectively challenged the sector’s competitiveness despite modest growth in year-to-date exports.

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Why Pakistan’s Rice Exports Are Falling While India Maintains Its Position

In November, Pakistan exported 406,843 metric tons of rice worth $171 million, showing a month-on-month increase compared to October, when exports stood at 360,474 metric tons. Despite this improvement, Pakistan’s overall rice exports remain significantly below last year’s levels. In comparison with its neighboring country India’s rice exports largely remained stable compared to the previous year. From April to November 2025, India earned approximately $7.3 billion from rice exports, almost unchanged from the same period last year. As the world’s largest rice exporter, India’s export performance has played a key role in shaping global rice stocks, alongside good harvests in other major producing countries that have kept global supply comfortable.
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