Pakistan textile sector unravels as exports nosedive
Pakistan’s textile industry faces potential collapse after years of mismanagement and ineffective policy decisions have eroded its position as the nation’s primary export sector. The industry contributed nearly 60 percent of total exports in previous years but has experienced sharp declines recently, with textile shipments dropping 3.83 percent during the first quarter of fiscal year 2026 to $7.61 billion from $7.91 billion during the same period one year earlier, according to Pakistan Textile Council figures. In September, the country recorded its fifth monthly contraction within six months as exports fell 11.71 percent to $2.51 billion while imports climbed 13.49 percent to $16.97 billion.
The Federation of Pakistan Chambers of Commerce & Industry highlighted logistics expenses consuming 15.6 percent of gross domestic product, nearly twice what advanced economies spend, making Pakistani goods uncompetitive before leaving ports. Pakistan has disappeared from the World Bank’s Logistics Performance Index as regional competitors advance through modern infrastructure and integrated networks.
Chairman Fawad Anwar of the textile council warned that without immediate corrective action, Pakistan risks additional factory closures and reduced foreign investment, leading to job losses and declining foreign exchange reserves during a period when the country cannot withstand such economic shocks.
