Weak export growth and uneven production reinforce industry demands for competitive energy, improved liquidity and investment across the textile value chain.
Pakistan’s textile exports edged from $17.88 billion in FY2025 to $17.93 billion in FY2026, according to an October 5 commentary by APTMA North Zone Chairman Kamran Arshad and trade economist Sarah Javaid. The authors argue that marginal export gains conceal deeper weaknesses in manufacturing and investment.
Production shows a divided recovery
Official Pakistan Bureau of Statistics data confirm that the textile category contracted 3.09% year on year in July 2026. With an 18.16% weight in the large-scale manufacturing index, it reduced overall growth by 0.53 percentage points.
However, the figures also show substantial differences across the supply chain. Wearing apparel, recorded separately, expanded 22.03%, while cotton yarn rose 2.73% and cotton cloth slipped 0.09%. Overall large-scale manufacturing grew 3.03% year on year and 9.51% from June. These distinctions matter when assessing the performance of Pakistan’s broader textile and clothing industry.
Investment remains central to export capacity
Arshad and Javaid report that real private fixed investment in large-scale manufacturing stands approximately 55% below its 2006 peak and 32% below its 2022 level. They identify lower electricity costs, tax rationalisation and stronger domestic supply-chain integration as priorities for rebuilding export capacity. These are the authors’ policy recommendations.
APTMA seeks lower costs and greater market reach
In a separate October 1 statement, APTMA Chairman Asad Shafi called for industrial electricity at seven US cents per kilowatt-hour, gas at $7 per MMBtu and financing at 7% annually. He also sought faster payment of outstanding government refunds to improve exporters’ liquidity.
Shafi’s agenda extends to design, branding and international distribution. He urged easier overseas investment rules and stronger support for ecommerce, warehousing and retail operations.
Looking ahead, APTMA says existing capacity could support an additional $3 billion in exports this year, with targeted investment enabling a $10 billion increase within two to three years. These remain conditional industry projections, dependent on a competitive and predictable business environment.
