Pakistan Textile Exports: The $13.5 Billion Backbone (FY2025–26)
Textiles are Pakistan’s largest export — $13.5 billion in FY2025–26, nearly half of all merchandise exports. This guide breaks down the sector: knitwear, garments, bedwear, the markets, and the challenges.
Quick answer: Pakistan’s textile exports were $13.5B in FY2025–26 (−0.5% YoY): knitwear $3.7B, readymade garments $3.2B (+3.8%), bedwear $2.4B. Textiles + leather = ~63% of merchandise exports. Key markets: USA, EU (GSP+), UK. July 2026 bounced +8.1% to $1.814B.
The FY26 breakdown
Per the Economic Survey 2025–26 and PBS: knitwear $3.7B (−1.1%), readymade garments $3.2B (+3.8%), bedwear $2.4B (+0.3%), towels and cotton cloth weaker. July 2026 showed life: $1.814B (+8.07%) on garments, knitwear, bedwear and towels — though August slipped to $1.43B. The sector held ground “despite global headwinds and domestic cotton supply constraints” (Economic Survey). Related: garments · bedlinen · cotton.
The value-added shift
The story of the last decade is the move up the chain: from exporting raw cotton to exporting finished garments and home textiles. Readymade garments’ 3.8% growth to $3.2B — while cotton cloth fell 10.9% — shows the shift working: Pakistan increasingly sells the shirt, not the fabric. Bedlinen ($4.41B including made-ups) remains the volume anchor.
Markets
The USA is the largest single buyer; the EU takes massive volumes under GSP+ duty preferences; the UK is the third pillar. Early FY26 saw Africa (+9%) and South Asia (+7%) growing as diversification markets. Full map: exports by country.
Challenges
- Cotton crop: flood damage cut domestic availability; ginning slowed — mills imported more.
- Energy costs: regionally uncompetitive power/gas tariffs squeeze margins.
- Concentration risk: 63% of exports in textiles+leather — a narrow basket (see export basket).
- Competition: Bangladesh, Vietnam and India in garments; each with different cost structures.
Textile exports: FAQs
How much are Pakistan’s textile exports?
$13.5B in FY2025–26 — about 45% of merchandise exports.
What is Pakistan’s biggest textile export product?
Knitwear ($3.7B), followed by readymade garments ($3.2B) and bedwear ($2.4B).
Where does Pakistan export textiles?
USA, EU (GSP+), UK — with Africa and South Asia growing.
Why did textile exports stall in FY26?
Weak global demand, flood-hit domestic cotton, and uncompetitive energy costs — though value-added garments still grew.
