From $16.7 billion in FY24, Pakistan’s textile exports are likely to increase to $18–19 billion in FY25, as per projections by analysts.
Figures from Topline Pakistan Research indicate, Pakistan’s textile exports increased by 6 per cent Y-o-Y and 1 per cent M-o-M to $1.5 billion in December 2024.
Representing the fifth consecutive month of YoY growth, this growth was largely driven by the value-added segment, especially readymade garments, which reported 20 per cent Y-o-Y and 9 per cent M-o-M rise in exports to $357 million. Exports in other segments, including silk, and synthetic textiles, increased by 22 per cent Y-o-Y and 28 per cent M-o-M to $38 million—the highest in 2.5 years.
Value-added segment continued to outperform, with exports rising by 12 per cent Y-o-Y and 1 per cent M-o-M. Knitwear, bedwear, and towels exports grew by 7 per cent Y-o-Y, 13 per cent Y-o-Y and 1 per cent Y-o-Y to $391 million, $256 million, and $88 million respectively. However, exports of basic textiles declined by 16 per cent Y-o-Y and 2 per cent M-o-M to $215 million in December, with cotton yarn exports contracting by 34 per cent Y-o-Y and 22 per cent M-o-M to $63 million.
In H1, FY25, Pakistan registered a 10 per cent Y-o-Y growth in textile exports to $9 billion. Exports of basic textiles declined while shipments in the value-added segment grew by 17 per cent Y-o-Y, driven by a 22 per cent Y-o-Y increase in RMG exports.
This recovery in Pakistan’s textile exports is been attributed to several factors, including an improved cotton crop, shifting orders from Bangladesh due to internal conflicts, and tariffs imposed on China.
All Pakistan Textile Mills Association (APTMA) is urging the Federal Board of Revenue (FBR) to support the sector’s growth by restoring zero-rating or equalizing GST on inputs, expediting refunds, digitizing processes, and shortening audit periods to enhance liquidity and competitiveness.