Pakistan’s Textile exports clocked in at US$1.4 billion in March 2025, up 10% year-over-year (Yoy) and 1% month-over-month (Mom). This is the 8th consecutive month that a year-over-year (Yoy) rise in textile exports has been seen, indicating a positive trajectory for textiles in FY25.
The 10% YoY increase was mainly driven by a 13% YoY growth in the Value-Added Segment. On a MoM basis, both Basic Textiles and the Value-Added Segment recorded a 1% rise.
§ In PKR terms, Pakistan Textile exports clocked in at Rs401bn, up 11% YoY and 1% MoM.
§ The Value-Added Segment recorded a 13% YoY and 1% MoM increase. The segment has been a focus for both the government and companies, contributing to the recent growth. According to the Federal Minister, significantly more emphasis and improvement are required to make it competitive in the international market.
§ Under Value-added segment, Bed Wear was the main contributor to the YoY growth. Bed Wear was up 19% year-over-year (Yoy) and 2% month-over-month (Mom) to US$ 256 million during March 2025. While Knitwear/Readymade Garments/Towels posted YoY changes of +15%/+12%/-4% and MoM changes of +6%/-2%/-8%, reaching US$386/321/89mn respectively.
§ Basic textiles witnessed a decline of 2% year-over-year (Yoy), while increasing 1% month-over-month (Mom) to US$ 205 million in March 2025. The major deterioration came from cotton cloth, which was down 10% year-over-year (Yoy) and 2% month-over-month (Mom) to US$146 million in March 2025.
§ During 9MFY25, Pakistan recorded textile exports of US$13.6bn a 9% YoY growth (+7% YoY in PKR terms). Basic textiles declined 13%, while value-added increased by 16% year-over-year (Yoy), with readymade garments contributing a 19% rise Yoy.
§ Going forward, we believe, the potential imposition of a 29% tariff on Pakistani textiles by the U.S. may present a challenge to companies exporting to USA.
§ We believe in FY25 exports will reach US$18-19bn as compared to US$16.7bn in FY24.
Courtesy – Topline Pakistan Research
