Pakistan's crucial textile sector is facing a sustained downturn, with official data revealing a continued slump in export earnings for the fourth month in a row. The month of November saw a significant decline, deepening concerns about the industry's competitiveness and its impact on the national economy.
A Persistent Downward Trend
According to the latest figures, textile exports for November 2025 fell by 8.2% compared to the same month in the previous year. This decline is not an isolated incident but part of a worrying pattern. The sector has now witnessed a consecutive drop in export revenues for four months, indicating deep-rooted structural and operational challenges.
The cumulative effect of this trend is substantial. When looking at the first five months of the current financial year, from July to November, the overall picture remains bleak. Total textile exports during this period stood at approximately $6.8 billion, which is a noticeable decrease from the $7.4 billion recorded in the corresponding period of the last fiscal year.
Root Causes of the Export Slump
Industry analysts and stakeholders point to a confluence of factors squeezing the profitability and operational capacity of textile mills and exporters. The primary culprit is the soaring cost of production, which has made Pakistani goods more expensive in the international market.
A major component of this high cost is the exorbitant price of energy. Pakistani textile manufacturers are grappling with some of the highest electricity and gas tariffs in the region. This directly undermines their ability to compete with rivals from countries like Bangladesh, India, and Vietnam, where energy costs are relatively lower and more stable.
Furthermore, the sector is burdened by high financing costs and a challenging macroeconomic environment. Issues related to the availability of raw materials and liquidity constraints have also contributed to the slowdown in production and export activity.
Broader Economic Implications and Sectoral Performance
The struggles of the textile industry have direct and serious consequences for Pakistan's overall economic health. As the largest industrial sector and a major source of foreign exchange earnings, its poor performance widens the country's trade deficit and puts pressure on the national currency.
A closer look at the data reveals that the downturn is widespread across most major product categories within the textile group. Exports of key items like knitwear, bedwear, and readymade garments have all contracted. This broad-based decline suggests that the problems are systemic, affecting the entire value chain from basic textiles to high-value finished products.
The consistent monthly declines highlight an urgent need for policy intervention. Industry leaders have long called for government support to address the crippling energy costs and to provide a more conducive environment for export-oriented manufacturing.
As Pakistan navigates economic challenges, the performance of its textile export engine is a critical indicator. The four-month consecutive decline serves as a stark warning. Without decisive measures to restore competitiveness, the sector risks losing further ground in the global market, with significant repercussions for employment, industrial growth, and the country's balance of payments.
