Textile exports grow by 7.39pc to $17.88bn in FY25

Pakistan's textile exports barely grew by 7.39% to $17.88bn in FY2025, up from $16.65bn the previous year

By Israr Khan
July 19, 2025

Workers operate machines preparing fabric at the Kohinoor Textile Mills in Lahore on July 20, 2023. — AFP
Workers operate machines preparing fabric at the Kohinoor Textile Mills in Lahore on July 20, 2023. — AFP

ISLAMABAD: Pakistan’s textile exports barely grew by 7.39 percent to $17.88 billion in FY2025, up from $16.65 billion the previous year, official data showed Friday — a concerning sign that the sector remains over-reliant on government subsidies and lacks market diversification, even as it remains the country’s export backbone.

This modest increase, though the second-best in the last five years, pales in comparison to FY2022’s record 25.5 percent surge to $19.33 billion.

Exporters and analysts warn that the industry’s structural weaknesses — including limited product innovation, insufficient investment in value-added goods, and heavy dependence on Western markets — continue to stifle sustainable growth.

Export data released by the Pakistan Bureau of Statistics shows a mixed picture. Knitwear, readymade garments and bedwear performed well, growing by 13.68pc to $5.01 billion, 15.85pc to 4.128 billion, and 11.1pc to $3.11 billion respectively. Likewise, towel exports also up by 2.6 percent to $1.08 billion. But traditional categories faltered — cotton cloth exports fell 3.05pc to $1.81 billion, and cotton yarn plunged 28.76pc to just $680.7 million. In June 2025, textile groups export up by 7.59 percent to $1.52 billion against $1.41 billion in June 2024. Food exports slipped 3.4pc to $7.11 billion. Rice exports — a key foreign exchange earner — dropped 14.7pc to $3.35 billion, with both basmati declined 5.3pc to $830 million and other varieties posting declines of 17.4pc to $2.5 billion.

Meat exports declined by 3.2 percent to $495 million, fruits 10.3 percent to $308 million, and vegetables by 14.5pc to $367.6 million. Whereas, fish and seafood exports increased by 13.4 percent to $465 million and sugar exports increased 1,851 percent to $411.1 million.

Exports of sports goods fell 2.74pc to $385.5 million in FY2025, with football shipments down 9.7pc to $229.8 million. Surgical instruments rose 1.6pc to $451.7 million, while cement exports surged 23.7pc to $329.8 million. Chemical and pharmaceutical exports grew 5.17pc to $1.57 billion, led by a 17.2pc rise in plastic products to $469.2 million and a 34pc jump in pharmaceutical goods to $457.4 million.

Meanwhile, Pakistan’s import bill reflected changing dynamics. Petroleum imports dropped 5.76pc to $15.93 billion — a relief for the current account — while machinery imports rose 13.37pc to $9.63 billion, driven by textile and power sector upgrades. In petroleum group, only LPG imports increased by 33.66pc to $1.05 billion, while imports of petroleum products dropped 10.3pc to $5.96 billion, LNG declined 11.9pc to $3.47 billion, and crude oil slipped 1.54pc to $5.44 billion.

The machinery group imports were driven by a 61.5pc surge in textile machinery to $241.2 million and a 47.8pc rise in power generation equipment to $616.2 million. Imports of construction and mining machinery jumped 46.8pc to $138.3 million, electrical machinery grew 16.6pc to $3.82 billion, and agricultural machinery increased 20pc to $109.6 million. In contrast, telecom machinery imports declined 11.3pc to $2.1 billion, with mobile phone imports falling 21.3pc to $1.49 billion.

Transport sector imports, however, jumped 32.7pc to $2.44 billion — a worrying trend as rising CKD/SKD vehicle imports, including luxury cars, erode foreign reserves. Under the complete knockdown/ semi-knockdown (CKD/SKD) category, imports increased by 57.8pc to $1.59 billion. Of this category, motorcars imports increased by 41.5pc to $1.103 billion, buses, trucks and heavy vehicles 132pc to $442.3 million, and motorcycles by 22.1pc to $48 million. Whereas imports of fully built-up motorcars alone reached $278.2 million.