Pakistan’s textile exports reached $5 billion in the first quarter of the fiscal year, from July to September 2026, according to official data. Total merchandise exports rose 11.13 per cent to $8.45 billion in the same period.
Readymade garments, knitwear and bedwear led the growth. Exporters said demand from Western markets stayed firm despite global uncertainty.
Warning signs
However, industry leaders warned of a possible slowdown in the October-December quarter. They pointed to weak buying in Western economies, higher freight costs and expensive energy at home.
The head of an exporters’ association urged the government to release stuck refunds and fix energy tariffs to keep factories competitive.
Trade deficit widens
Imports grew faster than exports, rising 13.2 per cent to $19.21 billion. As a result, the trade deficit widened to $10.77 billion in the quarter, up from $9.37 billion a year earlier.
Factory owners said new orders for winter clothing are coming in, which could support exports in the next quarter. They hope stable energy prices will help them meet delivery deadlines.
Value-added products like garments and knitwear are doing better than raw cotton and yarn. Exporters said moving up the value chain is the best way to earn more from each shipment.
The government has promised to clear pending refunds of exporters soon. Industry leaders said quick refunds would ease their cash problems and help them accept more orders.
Cotton prices at home have stayed firm after flood damage to crops earlier in the year. Mills said they are importing more cotton to keep machines running.
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