Pakistan’s Exports Plunge in Q3 as Textile Crisis Deepens

According to Pakistan Textile Council (PTC), Pakistan’s exports engine is sputtering. In the July–September 2025 quarter (Q3), total exports dropped to $7.62 billion, down 3.4% from last year. Exports in September alone plunged 11% year-on-year, from $2.81 billion to $2.50 billion.

The textile sector, the backbone of Pakistan’s export economy, is bearing the brunt of the decline. In September, textile exports fell 2% (from $1.61 b to $1.58 b). Every major textile category showed steep declines:

• Cotton (Ch 52): −7.8%
• Man-made filaments (Ch 54): −21%
• Wadding, felt & nonwovens (Ch 56): −12.9%
• Carpets (Ch 57): −11.4%
• Knitted fabrics (Ch 60): −29.5%
• Other vegetable fibers (Ch 53): −47.3%

Even value-added textile lines (HS Chapters 61–63) inched up by less than 1%, too weak to offset widespread losses.

At the product level, the contraction is brutal:

• Bed linen (non-cotton): down 2.5%
• Cotton bed linen: down 12.6%
• Worn clothing: down 2.7%
• Knitted T-shirts & vests: down 9.5%
• Knitted gloves: down 7.9%
• Cotton suits & jackets: down 17.8%
• Men’s bathrobes & gowns: down 16.7%

What’s Driving This Free Fall?

1. Cost pressures & tariffs

High energy costs, rising raw material prices, and heavy taxation have squeezed margins. Local industry insiders point out that global competitors like Bangladesh and Vietnam are now more cost competitive. Moreover, a newly imposed 19% US tariff on Pakistani textile exports threatens to further erode market access.

2. Policy flip-flops & lack of support

Export incentive schemes like EFS are undergoing changes, creating uncertainty. The PTC warns that inconsistent energy pricing and regulatory shifts make planning impossible.

3. Weak fundamentals in agriculture & supply chain

Flood damage to cotton crops and deteriorating fiber quality undercut input supply. The entire value chain, from fiber to finished goods, is destabilized.

4. Broader export struggles

This textile slump is part of a larger export downturn. Merchandise exports have registered negative growth in several consecutive months. Pakistan’s exports missed FY 2024–25 targets, reaching $32.106 billion against a goal of $32.341 billion. The trade deficit is widening.

Why This Matters

• Jobs at risk: Textileing employs millions. Factory closures or shrinkage will hit livelihoods.
• Loss of competitiveness: Declining exports mean weaker presence in global supply chains.
• Vulnerability to external shocks: With weak exports, the economy is less resilient to currency, debt, or global demand shocks.
• Policy window shrinking: Without urgent reforms, damage may become irreversible.

PTC Chairman Fawad Anwar warns that unless the government intervenes quickly, Pakistan will lose its core export base. He’s demanding consistent energy pricing, stable export schemes, and revival of the textile value chain.

At this moment, the country faces a stark choice: act decisively or brace for further decline. The textile sector isn’t just another industry, it is a linchpin of Pakistan’s economic identity.