TCF POST REPORT
ISLAMABAD — Pakistan’s textile export earnings reached $1.656 billion in May, marking a 10.43% year-on-year (YoY) growth. While this surpasses April’s intake of $1.48 billion, May’s growth rate slowed to nearly half of the robust 20.92% recorded in the previous month.
With May’s proceeds, total textile export earnings reached $18.22 billion for the first 11 months of the current fiscal year (FY26). Despite monthly fluctuations, the sector has maintained a steady, gradual upward trajectory over the past three fiscal years.
Despite the positive growth, industry insiders warn that the textile sector is battling severe operational and market shocks. These include surging input costs, such as soaring fuel and energy prices, as well as expensive raw material imports.
Furthermore, a sharp drop in domestic cotton production is heavily straining local manufacturers. A global demand slump—especially sluggish retail demand in key international destinations like the EU and US markets—is creating pressure for Pakistan, alongside other South Asian sourcing destinations including Bangladesh, India, and Sri Lanka.
Against this challenging backdrop, Prime Minister Shehbaz Sharif chaired a high-level review meeting on Tuesday, focusing on sectoral reforms and policy measures. The Prime Minister said effective strategic interventions are underway to address these challenges, increase national investment, and boost overall export growth.
