Textile Exports up 7% in FY25 to US$18bn

Staff Report

Islamabad: Pakistan Textile exports clocked in at US$1.5bn in June 2025, up 8% YoY while down 1% MoM. The 8% YoY increase in Jun 2025 was mainly driven by a 37% YoY rise in cotton yarn exports and 9% increase in value added textile.

 In PKR terms, Pakistan Textile exports clocked in at Rs430bn flattish MoM while up 9% YoY. Value Added Segment saw a 9% YoY rise wherein Knitwear increased 6% YoY to US$455mn during Jun 2025. Other value-added segments such as Bedwear, Towels and Read Made Garments  recorded a YoY of 17%, 0% and 11% to US$273mn, US$87mn and US$360mn.

In FY25 Textile Exports reach US$17.9bn up 7% from US$16.7bn in FY24. The 7% YoY growth—the highest in 3 years—was led by a 13% rise in value-added textiles (with readymade garments up 16% YoY), while other segments rose 6% YoY. Basic textiles declined 13% YoY due to a sharp 98% drop in raw cotton amid a weaker crop.Textile Exports Remain Flattish

In PKR terms, Pakistan Textile exports clocked in at Rs4,996bn in FY25, up 6% YoY. This was mainly due to rupee stability. We believe in FY26 exports will reach US$19-20bn as compared to US$18bn in FY25,” Topline said.

Textile exports have seen a recovery in the last 2 years and we expect further recovery in textile exports going forward. The next major factor for textile exports of Pakistan is US Pakistan trade negotiation and result of which is expected before or on Aug 01, 2025.

 We maintain our overweight stance on Pakistan textile sector wherein NML is preferred pick as company is trading at FY26 PE of 7.3x,” Topline added.