ISLAMABAD: Pakistan’s textile exports continued to show resilience in May 2026, rising to $1.656 billion, which reflects a 10.43 per cent year-on-year (YoY) increase. Despite global demand fluctuations, rising input costs, and domestic cotton supply constraints, the sector managed to maintain an overall upward momentum in export earnings during FY26.
On a cumulative basis, textile exports during July-May FY26 stood at $18.22 billion (provisional), compared with $17.88 billion in FY25, $16.68 billion in FY24, and $16.51 billion in FY23. This shows a gradual but consistent recovery trend in Pakistan’s textile export performance over the past four fiscal years, even though the pace of growth remains modest.
Monthly data for FY26 highlights significant volatility in export performance. Exports began at $1.31 billion in July, before rising sharply to $1.69 billion in August, supported by stronger export orders. However, the momentum weakened in September and October, with exports recorded at $1.58 billion and $1.62 billion, respectively. The downward trend continued in November and December, when exports fell to $1.42 billion and $1.35 billion, reflecting weaker global demand conditions and cost pressures.
The sector regained strength in January 2026, when exports reached $1.74 billion, the highest monthly level of the year. This was followed by a sharp decline in February and March, when exports fell to $1.31 billion and $1.33 billion, marking one of the weakest phases of the fiscal year. However, the sector recovered again in the final quarter, with exports rising to $1.48 billion in April, a 20.92% year-on-year increase, and further strengthening to $1.656 billion in May, up 10.43 per cent year-on-year (YoY).
Overall, FY26 is shaping up to be a year of modest but positive growth for the textile sector. However, this growth remains uneven and highly dependent on external market conditions rather than strong domestic supply fundamentals. Industry observers note that the sector continues to face structural challenges, particularly the decline in domestic cotton production, rising dependence on imported raw material, higher energy costs, and input price volatility.
Over a longer period, Pakistan’s textile exports show a gradual recovery trend. Exports increased from $16.51 billion in FY23 to $16.68 billion in FY24, then to $17.88 billion in FY25, and are projected to reach $18.22 billion in FY26 (provisional). While this upward trend is encouraging, the improvement remains limited compared to the sector’s potential and regional competitors.
