By Moaaz Manzoor
Pakistan’s textile and apparel industry accounted for nearly 63% of the country’s total exports in the first quarter of FY26, highlighting how crucial the sector remains to the national economy despite ongoing energy shortages and rising production costs.
According to the Pakistan Textile Council’s (PTC) Q1FY26 report, textile exports reached $4.79 billion between July and September, while the nation’s total exports stood at $7.62 billion.
The report noted that even though global demand shifted throughout the quarter, Pakistan’s textile industry held firm thanks to stronger sales in value-added goods such as clothing and home textiles.
However, the report also warned that high electricity and gas prices, combined with increasing labor costs, continue to shrink profit margins and limit the industry’s ability to grow.
Pakistan’s Textile Exports Show Signs of Stability Amid Challenges
Over the past five years, textile exports during the first quarter have ranged between $4.14 billion and $4.79 billion, showing a pattern of ups and downs influenced by unstable policies and fluctuating energy costs.
The Council stressed that Pakistan needs a stable energy pricing system for industries, linked to competitor countries such as Bangladesh and Vietnam, to make exports more competitive.
Labor Costs and Wage Rules Add to Exporters’ Burden
The report found that wage and overtime rules in Pakistan remain more expensive than those in neighboring export economies.
These higher costs make it harder for local manufacturers to expand or compete internationally.
The Council said that introducing automation incentives, revising wage policies, and keeping consistent fiscal regulations could help the sector reduce costs and attract new investments.
PTC Urges Energy and Labor Policy Reforms
The PTC urged the government to take immediate steps to align energy and labor policies with regional benchmarks.
A predictable business environment, it said, would help restore investor confidence, support long-term growth, and reduce the ups and downs that have long hurt Pakistan’s export sector.
Call for a Long-Term Export Strategy
The Council also recommended a five-year export strategy with clear goals and regular monitoring. This plan, according to the report, should focus on policy consistency, cost management, and technological progress to help Pakistan maintain its foothold in global markets.
Textile Industry Remains Pakistan’s Key Export Driver
The report emphasized that textiles continue to anchor Pakistan’s export performance. But for the industry to sustain this growth, structural reforms in energy pricing, labor regulations, and financial policies are necessary.
With the right long-term plan, the sector could boost its competitiveness and secure a stronger position in international trade.
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