Pakistan’s textile industry closed the fiscal year 2025-26 with a marginal increase in export earnings, although the sector faced a marked slowdown in June as overseas shipments declined sharply compared to the previous month and the same period last year.
According to the latest export data, Pakistan earned $1.282 billion from textile exports in June 2026. This represents a 22.63 percent decline compared to May 2026, when exports reached $1.657 billion. On a year-on-year basis, exports also declined by 15.77 percent to $1.522 billion recorded in June 2025.
The decline suggests that exporters faced increasing difficulties during the last month of the fiscal year, including a decline in international demand and challenging market conditions. Industry stakeholders have repeatedly called for measures to improve competitiveness and reduce production costs.
Despite the June setback, Pakistan’s textile sector maintained overall stability throughout the fiscal year. Total textile exports for the fiscal year 2025-26 reached $17.97 billion, slightly higher than the $17.91 billion recorded in the previous fiscal year, resulting in an annual growth of 0.34 percent.
The figures highlight the importance of the textile industry to Pakistan’s economy, as it is the country’s largest export-earning sector and a major source of employment. Economists believe that strengthening export incentives, ensuring reliable energy supply, and expanding access to new international markets could help accelerate export growth in the next fiscal year.
With continued improvement in global economic conditions, the performance of Pakistan’s textile industry will remain a closely watched indicator of the country’s export competitiveness and foreign exchange outlook.