Modest textile gains offset by rising imports and weaker food exports
Pakistan’s textile exports rose 2.5% month-on-month (MoM) in October 2025, reaching USD 1.62 billion, compared to USD 1.58 billion in September. However, on a year-on-year (YoY) basis, exports slipped 0.61% from USD 1.63 billion in October 2024, reflecting continued sectoral sluggishness.
During the first four months of FY2026 (July–October), textile exports totaled USD 6.39 billion, up 3.9% from USD 6.15 billion in the same period last year. The broader export picture, however, remains weak. Pakistan’s total exports fell 4.04% to USD 10.45 billion, weighed down by a drop in food exports, particularly rice.
At the same time, imports surged. Between July and October, imports climbed to USD 23 billion, compared to USD 20 billion a year earlier—a 15% increase—driving the trade deficit up 38% to USD 12.58 billion, from USD 9.1 billion in FY2025.
On a monthly basis, total exports rose 14% in October to USD 2.85 billion, while imports grew 3.6% to USD 6 billion. Yet compared to the previous year, exports declined 4.46%, even as imports jumped 20%, underscoring the imbalance.
Analysts attribute the fragile export growth to energy shortages, slow global demand, and competitive pressures from regional peers, while rising import costs—particularly for fuel and machinery—continue to strain Pakistan’s external accounts.
With the textile sector showing only marginal recovery and non-textile exports weakening, policymakers face the dual challenge of sustaining industrial output and managing external financing risks in a tightening global market.
