Pakistan’s textile industry, the country’s biggest exporter, is facing a steep decline. Recent data from the Pakistan Textile Council (PTC) show that textile exports fell 3.8 percent in the first quarter of fiscal year 2026, dropping to $7.61 billion from $7.91 billion a year earlier. By September, exports had plunged 11.7 percent to $2.51 billion while imports jumped 13.5 percent to $16.97 billion.
Experts say short‑term fixes – rebates, bailouts, and energy subsidies – only mask the problem. They do not make Pakistani textiles more competitive. “If we don’t act now, we risk more factory closures, lost jobs, and a sharp hit to foreign‑exchange earnings,” warned PTC chairman Fawad Anwar.
The government’s logistics system is a major culprit. The Federation of Pakistan Chambers of Commerce &Industry (FPCCI) reports that logistics cost about 15.6 percent of GDP, nearly twice the level in advanced economies. Before a garment shipment even leaves the port, it is hit with high fees and delays that make exports unviable. Pakistan has slipped off the World Bank’s Logistics Performance Index, whereas neighbors like India, Vietnam, and Bangladesh are climbing due to efficient ports, modern railways, and integrated supply chains.
Outdated technology, an energy crisis, and policy uncertainty – with frequent tax breaks and import rules changing – further hurt the sector. While politicians talk about revival plans and energy relief, the shrinking industry, factory shutdowns, and job losses paint a clearer picture.
If Pakistan wishes to save its textile exports and protect the jobs tied to them, it must overhaul its logistics, adopt new technology, and create stable, long‑term incentives for exporters. Otherwise, the industry that once accounted for nearly 60 percent of national exports could collapse, leaving the economy and workers in a difficult position.
Source: ianslive
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