Pakistan’s Textile Industry Calls for Urgent Measures Amid Export Challenges
Pakistan’s textile sector has called for immediate policy steps to address increasing production costs, financial difficulties, and a decline in domestic cotton production.
In a letter sent to Prime Minister Shehbaz Sharif, the Pakistan Textile Council (PTC) highlighted concerns over the performance of textile and apparel exports during the fiscal year 2025-26. According to the council, exports recorded only a slight increase of 0.26 percent, reaching $17.93 billion compared with $17.88 billion in the previous year.
The council also pointed out that textile exports witnessed a significant decline in June, falling 17 percent year-on-year and 23 percent compared with the previous month. It described the monthly performance as the weakest level recorded in over a year.
The textile industry’s concerns come at a time when Pakistan’s overall exports have faced pressure, while rising imports have increased challenges for the country’s external account.
The PTC identified several key issues affecting exporters, including high manufacturing costs, delays in implementing the expanded Export Refinance Scheme announced in the federal budget, and a shortage of locally produced cotton.
The council stated that Pakistan’s cotton output has declined significantly over the years, with production currently estimated at around 5.5 million bales compared with a peak of 14.8 million bales in 2011-12. It linked the decline to factors such as climate challenges, water shortages, and reduced farmer interest in cotton cultivation.
To strengthen the textile sector, the PTC recommended measures including:
- Reducing employer EOBI contributions to 2 percent
- Reviewing industrial electricity tariffs
- Speeding up implementation of the Export Refinance Scheme
- Declaring cotton production a national priority through better seeds, farmer support, and improved planning
PTC Chairman Fawad Anwar said the industry is seeking a more competitive business environment to help increase exports and improve Pakistan’s position in global markets.
