Pakistan Textile Exports Surge to 3-Year High

Karachi, Nov 1 (PTI) Pakistan hit a three-year high of USD 1.6 billion in textile exports in September, driven by robust demand for value-added categories and renewed global orders, a report issued by the State Bank of Pakistan said on Saturday.

The report said that knitted apparel exports alone touched an all-time high of USD 485 million, underscoring the strength of Pakistan's value-added segment.

The textile sector accounted for nearly 60 per cent of the country's total goods exports during the month, which reaffirmed its role as the backbone of Pakistan's export economy.

US tariffs on regional peers, a stable exchange rate, and strong trade linkages were responsible for the figures, said Humera Nawaz, a financial analyst at Arif Habib Investments.

But Nawaz cautioned that many challenges still remain for the textile exports industry, including high energy costs, expensive financing, and cotton supply disruptions that affect long-term competitiveness.


She said studies projected that profitability across Pakistan's listed textile companies would rise by nearly three times year-on-year in the first quarter of FY-26, supported by higher export volumes and lower borrowing costs, and Pakistan's advantage when it came to US tariffs.

Gul Ahmed Textile Mills, a major player in Pakistan, is expected to post a profit after tax of PKR 2.4 billion, up 6 per cent from last year; Nishat Mills is projected to earn PKR 1.3 billion, up 41 per cent.

A senior procurement manager in Nishat Mills said that the textile industry could be more profitable, but there have been yarn shortages due to damage to the cotton crop caused by recent rains.

He said many manufacturers were forced to import yarn, which increased costs because of dollar payments.

Despite these pressures, exporters of bed linen, towels, home textiles, hosiery, and knitwear continue to expand their global footprint.