Pakistan’s textile exports rise even as yarn exports fall

Pakistan's textile and clothing exports increased by 10.51 per cent to $7.61 billion during the first five months of the current fiscal year (FY25), buoyed by increased global demand and supply chain disruptions affecting competitors like Bangladesh.

Key export categories like ready-made garments, knitwear, bedwear, and towels witnessed significant growth, driven by a 23.10 per cent increase in garment exports and 18.42 per cent growth in knitwear exports.

However, the sector faces challenges such as higher taxation and structural inefficiencies. Despite having a $25 billion installed capacity, exports remain stagnant.

While raw cotton imports increased by 104.33 per cent, imports of synthetic fibers and second-hand clothing also increased, highlighting the sector's complex dynamics. As the industry navigates these challenges, it will be crucial to address issues like taxation and infrastructure to fully capitalize on the current opportunity.