Pakistan's Textile Industry Faces Export Challenges Amid Political Instability

Pakistan's textile industry, once a leader in export earnings, is now facing challenges due to political instability. Despite a 10.51% increase in early FY25 exports, the sector struggles with diversification and competitiveness, leading to a potential shortfall in meeting its USD 25 billion export target.

Pakistan's textile sector, which was once the backbone of the nation's economy, is now grappling with numerous challenges. The industry, a key contributor to export revenues, has witnessed a modest 0.93% growth in FY24. However, the early months of FY25 seemed promising with a 10.51% increase compared to last year.

Ijaz Khokhar, Patron-in-Chief of Pakistan Textile Exports, expressed concerns over the industry's declining trend after initial positive growth. Political instability has been a primary hurdle, leading to a loss of export orders as buyers shift preferences to Vietnam. Missed opportunities from Bangladesh's political changes only added to the woes.

Economists highlight the need for diversification, warning that continuing political tensions and stringent tax measures could severely impact the industry. Moreover, the shift of many textile companies to Dubai further complicates the situation, with potential under-invoicing affecting export revenues.