By Moaaz Manzoor
The Pakistan Textile Exporters Association (PTEA) said on Tuesday that the drop in quarterly exports is mainly due to weak global demand, rising production costs, and higher prices for raw materials.
The textile sector, which is a key part of Pakistan’s export economy, is feeling the pressure the most.
The PTEA urged the government to focus on reducing input costs, making it easier to do business, and keeping energy prices stable to make exports more competitive.
The Pakistan Textile Council (PTC) has also raised similar concerns, warning that rising costs and unclear policies are making Pakistan’s textile industry less competitive. “This is a wake-up call,” said PTC Chairman Fawad Anwar.
“The cost of doing business in Pakistan is becoming unbearable. Without quick reforms, more export-focused factories could close, and foreign investment may decline.”
The PTC suggested aligning wage and labor policies with regional competitors, offering predictable energy tariffs, automating 72-hour tax refunds, expanding export financing, and ensuring policy stability with transparent monitoring.
“These are not requests for subsidies but for a level playing field,” Anwar added.
Despite a large trade deficit in the first quarter of fiscal year 2025-26, analysts see a small month-on-month export rise in September as a sign of resilience under tough conditions.
While global slowdowns and weaker demand in major markets like the US and EU remain challenges, industry experts say September’s modest rebound could hint at a gradual recovery if supportive policies continue in the coming months.
According to PTEA figures, Pakistan’s exports in September 2025 were $2.504 billion, down 11.71% from $2.836 billion in the same month last year. However, exports grew 3.64% month-on-month in September.
For the July-September quarter, exports totaled $7.603 billion, down 3.83% from $7.906 billion a year earlier. Imports in September rose 14% to $5.845 billion from $5.127 billion in September 2024. On a quarterly basis, imports were $16.971 billion, up 13.49% from $14.954 billion.
As a result, the trade deficit widened by 45.83% in September, reaching $3.34 billion compared to $2.29 billion last year. For the quarter, the deficit increased 32.92% to $9.36 billion from $7.04 billion a year ago.
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