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ISLAMABAD: Pakistan’s textile and clothing exports saw a strong start to the current fiscal year, rising by 32 per cent in July.
This surge, driven by increased demand from North America, follows the imposition of higher tariffs on competitors in the sector. Export proceeds for the month reached $1.68 billion, compared to $1.27bn in July 2024, according to data from the Pakistan Bureau of Statistics (PBS).
The sector has shown a positive growth trend in recent months, with June recording a year-on-year increase of 7.59pc. This recovery comes after consecutive declines in April and May, when exports posted negative growth. Pakistan’s textile and clothing exports grew by 7.39pc in FY25, totalling $17.887bn, up from $16.655bn the previous year.
Despite a $25bn installed capacity, the sector has faced stagnation over the past two years due to structural issues, according to industry players. Exporters continue to press for the early release of pending refunds and rebates, which have been delayed for months.
PBS data shows that in July FY26, exports of readymade garments rose by 35.47pc in value and 36.90pc in quantity, while knitwear saw a 43.50pc increase in value and a 51.06pc rise in quantity. Bedwear exports also grew by 38.29pc in value and 40.43pc in quantity. However, cotton cloth exports saw modest growth, rising by just 1.19pc in value and 5.56pc in quantity. Yarn exports showed a marginal increase of 0.57pc.
Exports of made-up articles, excluding towels, surged by 45.38pc, while towel exports rose by 33.93pc in value and 32.85pc in quantity. However, exports of tents, canvas, and tarpaulin fell by 37.64pc. Notably, no raw cotton was exported in July FY26.
Imports of synthetic fibre increased by 30.63pc, and imports of synthetic and artificial silk yarn grew by 37.43pc. Textile machinery imports surged by 115.42pc during the same period. However, raw cotton imports declined by 4.13pc, and second-hand clothing imports grew.
In the broader export sector, total exports in July increased by 16.42pc, reaching $2.68bn, up from $2.31bn a year ago.
Oil imports
Pakistan’s oil import bill grew by 6.42pc, reaching $1.34bn in July compared to $1.26bn in the same month last year. The increase in crude oil imports was significant, rising by 10.44pc in value and 29.02pc in quantity to 758,384 tonnes. Petroleum product imports also saw a substantial rise of 27.38pc in value and 49.44% in quantity, totalling 1.233 million tonnes.
In contrast, imports of liquefied natural gas (LNG) declined by 30.39pc, while liquefied petroleum gas (LPG) imports rose by 10.74pc. The rise in crude oil imports signals increased transportation and economic activities, which in turn suggests higher capacity utilisation in local refineries, contributing to their profitability.
Published in Dawn, August 23rd, 2025
