Print Print edition: 2025-09-17

2MFY26: Pakistan’s textile exports slump swells trade deficit to $6bn

Published September 17, 2025 Updated September 17, 2025 09:17am

3 min

By Hamza Habib

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ISLAMABAD: A decline in textile exports in August of the 2025-26 fiscal year swelled the trade deficit to USD 6 billion in the first two months of the ongoing financial year, as the majority of textile sub-sectors showed a negative growth.

According to sector-wise details issued by the Pakistan Bureau of Statistics, the trade deficit increased by 29 percent in the first two months of the fiscal year 2025-6 as the exports in August were down by 12.49 percent on a year-on-year (YoY) basis and 10.39 percent on a month-on-month (MoM) basis.

According to the figures issued by the Pakistan Bureau of Statistics (PBS) on Tuesday, in July-August, the country’s exports stood at USD 5.10 billion, showing a nominal increase of 0.65 percent. Whereas the imports increased by 14.53 percent in the first two months of the current fiscal, which reached USD11.12 billion from USD9.73 billion in the corresponding period of last year.

With 63pc of Pakistan’s overall exports: Textile sector stays dominant contributor

On a YoY basis, knitwear exports declined by 2.28 percent on a YoY basis and 13.58 percent on a MoM basis. Readymade garments down by 8.26 percent on a YoY and 18.40 percent on a MoM basis, bedwear exports decreased by 5.94 percent on a YoY and 9.60 percent on MoM basis. Whereas cotton cloth exports decreased by 12.44 percent on YoY basis but up by 10.52 percent on MoM basis, rice exports nosedived by 39.40 percent on a YoY basis and 15.87 percent on a MoM basis, and towels exports declined by 14.05 percent on a YoY and 9.62 on MoM basis. Made-up articles (Excluding towels & bedwears) down by 5.06 percent on YoY and 4.97 percent on a MoM basis, and Basmati rice export decreased by 47.72 percent on a YoY basis and 7.90 percent on a MoM basis.

However, cotton yarn showed a growth of 16.88 percent on a YoY and 12.06 percent on MoM basis, and cement exports were up by 73 percent on a YoY and 8 percent on MoM basis.

Among the major imported items, petroleum crude imports are down by 15.04 percent on a YoY basis, but went up by 22.12 percent on a MoM basis. Petroleum products imports increased by 5 percent on a YoY basis but down by 44 percent on a MoM basis. Palm oil imports increased by 33.75 percent on a YoY basis and 10.91 percent on a MoM basis.

LNG imports decreased by 26.5 percent on a YoY but increased by 19.02 percent on a MoM basis. Plastic materials imports increased by 16.46 percent on a YoY basis but decreased by 12.80 percent on a MoM basis. Iron and steel imports jumped by 81.2 percent on a YoY basis but declined by 6.70 percent on a YoY basis. Electrical machinery &apparatus imports declined by 11.90 percent on a YoY basis and by 23.83 percent on a MoM basis.

Motor cars (CKD/SKD) imports increased by 75 percent on a YoY and 26.37 percent on a MoM basis. Mobile phone imports also skyrocketed to 98.30 percent on a YoY basis and 5.98 percent on a MoM basis. Iron and steel scrap imports declined by 9.19 percent on a YoY basis and 0.65 percent on a MoM basis.

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