Pakistan Cotton Exports: Yarn, Cloth & the Flood-Hit Crop ($750M)

Cotton is where Pakistan’s textile story starts — but the country now exports more yarn and cloth than raw cotton. FY26: cotton yarn exports up 14% to $750M despite a flood-damaged domestic crop.

The crop

Pakistan is historically among the world’s top cotton growers — Punjab and Sindh’s white gold. But the crop has shrunk: flood damage in recent years, pest pressure, and farmers switching to more profitable crops (sugarcane, maize). FY26’s floods hit ginning early in the season. The paradox: Pakistan’s mills now import significant raw cotton (notably from the USA, Brazil and Africa) to feed export yarn production.

Yarn: the growth line

Cotton yarn — spun in Faisalabad, Multan and Karachi mills — is Pakistan’s main raw-textile export: $750M in FY26 (+14%), with July 2026 up 18.7% to $66.5M and February 2026 up 43.6% to $73.84M. Buyers: China, Bangladesh and Vietnam — garment factories that spin Pakistani yarn into their own exports.

Cloth: the weak line

Cotton cloth (grey and finished fabric) fell 10.9% in FY26 — “weaker global demand for intermediate textile goods” (Economic Survey). The lesson of the decade: every step up the value chain (yarn → cloth → garments) earns more and fluctuates less. Cloth is caught in the middle.

Markets

Yarn: China, Bangladesh, Vietnam, Turkey. Cloth: EU, USA (for finishing), regional markets. The China yarn trade is the steadiest — Chinese mills buy Pakistani yarn for re-export garments. The value-added story: textile exports · garments.

Cotton exports: FAQs

How much cotton yarn does Pakistan export?

$750M in FY2025–26, up 14%.

Why does Pakistan import cotton if it grows cotton?

Floods, pests and crop-switching shrank the domestic crop below mill demand.

Who buys Pakistani cotton yarn?

China, Bangladesh, Vietnam and Turkey.

Why did cotton cloth exports fall?

Weak global demand for intermediate textiles (−10.9% in FY26).