Pakistan’s textile industry is experiencing a strong recovery, with exports reaching $1.5 billion in December 2024. This marks the fifth consecutive month of growth in textile exports, continuing a positive trend that shows an encouraging rise in the sector. This increase is largely attributed to the low base effect from last year, but also to improvements in the overall textile production and export sectors. Compared to the same month last year, exports rose by 6 percent, while there was a modest 1 percent increase compared to the previous month.
The growth in textile exports has been primarily driven by the value-added segments of the industry, particularly in readymade garments. Other products such as art, silk, and synthetic textiles also saw notable growth, with a remarkable 22 percent rise compared to the previous year, reaching $38 million in December, marking the highest figure in the past 2.5 years.
When expressed in local currency, Pakistani Rupees (PKR), textile exports amounted to Rs. 411 billion, showing a 4 percent increase compared to last year and a 1 percent increase from the previous month. The value-added segment, which includes products like knitwear, bedwear, and towels, saw a growth of 12 percent year-on-year, with readymade garments standing out with a 20 percent increase compared to last year, totaling $357 million in exports for December.
Other value-added products such as knitwear, bedwear, and towel garments also saw strong growth, with exports increasing by 7 percent, 13 percent, and 1 percent respectively. Knitwear reached $391 million, bedwear stood at $256 million, and towel garments hit $88 million. These improvements in the value-added segment have been crucial to the growth in overall textile exports.
However, basic textiles, which include products like cotton yarn, showed a decline. Cotton yarn exports dropped by 34 percent compared to last year, and 22 percent compared to the previous month, totaling only $63 million. The overall performance of basic textiles saw a 16 percent drop year-on-year and a 2 percent drop month-on-month.
For the first half of the fiscal year 2025, Pakistan’s textile exports reached $9 billion, reflecting a 10 percent increase compared to the same period last year. The rise in textile exports was largely driven by the strong performance of value-added products, especially readymade garments, which saw a 22 percent year-on-year growth. In contrast, the basic textiles segment faced challenges, with a decline in cotton yarn exports.
Several factors have contributed to the recovery in Pakistan’s textile exports. A good cotton crop last year, the diversion of orders from Bangladesh due to internal conflicts, and tariffs on Chinese products have all played significant roles in boosting Pakistan’s textile industry. These factors have not only helped Pakistan meet its export targets but have also opened up new opportunities for growth.
Looking ahead, the All Pakistan Textile Mills Association (APTMA) has called on the Federal Board of Revenue (FBR) to introduce key measures to further support the sector. These include restoring zero-rating or equalizing GST on inputs, ensuring timely refunds, improving liquidity through enhanced digitization, and reducing audit periods to make the sector more competitive globally.
With the textile sector showing strong growth, experts predict that Pakistan’s textile exports will reach between $18 billion and $19 billion by the end of the fiscal year 2025, a significant improvement from the $16.7 billion recorded in fiscal year 2024.
In conclusion, Pakistan’s textile exports are on a positive trajectory, with consistent growth driven by value-added products, particularly readymade garments. Despite challenges in the basic textiles sector, the industry as a whole is expected to continue its upward trend in the coming months. With the right support and measures in place, Pakistan’s textile industry has the potential to reach new heights, contributing significantly to the country’s economy.
