Pakistan's textile sector, the backbone of its export economy, has recorded only marginal growth in the current fiscal year, highlighting persistent structural constraints despite stronger performance in select segments.

According to the Pakistan Bureau of Statistics, textile exports rose by just 1.25 percent to $10.904 billion during July-January FY2025-26, compared with $10.77 billion in the same period last year. The modest increase underscores limited momentum in a sector critical to foreign exchange earnings.

Growth has been uneven across product categories. Knitwear exports expanded by 2.14 percent to $3.099 billion, while ready-made garments performed more strongly, rising 5.66 percent to $2.579 billion. Bedwear also contributed to the increase, posting a 2.71 percent rise to $1.919 billion.

Other segments showing positive movement included tents, canvas and tarpaulin, which grew by 2.20 percent, as well as made-up articles excluding towels and bedwear, which increased by 1.87 percent. Exports of other textile materials rose by 5.68 percent. Raw cotton shipments recorded a sharp percentage increase of 323.05 percent, though from a low base.

However, these gains were offset by declines in several traditional export categories. Cotton cloth exports fell by 12.18 percent to $992.177 million, while cotton yarn declined by 0.78 percent. Yarn other than cotton yarn also decreased by 2.55 percent, alongside a marginal drop in towel exports and a 5.27 percent fall in art silk and synthetic textiles.

Short-term indicators suggest a temporary recovery. Textile exports increased by 3.14 percent year-on-year in January 2026, reaching $1.739 billion. On a month-on-month basis, exports surged by 28.72 percent from December levels, indicating a seasonal or cyclical upswing.

Despite this recent improvement, the broader trend remains one of subdued expansion. The data reflects a sector that is maintaining stability but struggling to achieve significant growth, with reliance on a few performing categories to offset declines elsewhere.

The overall picture points to a gradual but uneven evolution in Pakistan's textile exports, where incremental gains coexist with structural weaknesses that continue to constrain stronger expansion.