{"id":10149,"date":"2025-07-21T12:31:16","date_gmt":"2025-07-21T07:31:16","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=10149"},"modified":"2025-07-21T12:31:18","modified_gmt":"2025-07-21T07:31:18","slug":"textile-sector-exports-rise-cotton-recovery-on-the-horizon","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/textile-sector-exports-rise-cotton-recovery-on-the-horizon\/","title":{"rendered":"Textile sector: exports rise, cotton recovery on the horizon"},"content":{"rendered":"\n<p>Pakistan\u2019s <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/textile-sector\/\" data-type=\"post_tag\" data-id=\"273\" target=\"_blank\" rel=\"noreferrer noopener\">textile sector <\/a><\/strong>showed modest growth in FY25, with total exports increasing by 7% year-on-year, reaching <strong>USD 17.9 billion<\/strong> (vs USD 16.7 billion in FY24). This rebound was powered by stronger performance in <strong>value-added products<\/strong> like knitwear, bed linen, and ready-made garments, key pillars of Pakistan\u2019s textile exports.<\/p>\n\n\n\n<p>In June 2025 alone, monthly textile exports clocked in at <strong>USD 1.52 billion<\/strong>, up 8% YoY, although slightly down by 1% compared to May. Major contributors to this monthly growth included:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cotton Yarn<\/strong>: +37% YoY<\/li>\n\n\n\n<li><strong>Knitwear<\/strong>: +6% YoY<\/li>\n\n\n\n<li><strong>Bedwear<\/strong>: +17% YoY<\/li>\n\n\n\n<li><strong>Garments<\/strong>: +11% YoY<\/li>\n<\/ul>\n\n\n\n<p>On the other hand, <strong>cotton cloth<\/strong> exports fell by 9% YoY, pointing to challenges in the basic textile segment. Despite this, <strong>value-added exports rose by 9% YoY<\/strong>, a positive signal for long-term profitability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Cotton supply: short-term pain, long-term optimism<\/h2>\n\n\n\n<p>Cotton arrivals have seen a <strong>sharp 33% YoY drop<\/strong> as of July 2025. While Punjab posted a healthy 27% increase due to early sowing, Sindh suffered a <strong>53% YoY decline<\/strong>, primarily due to poor weather.<\/p>\n\n\n\n<p>Pakistan\u2019s cotton imports <strong>surged 1.8x YoY<\/strong> to <strong>USD 1.2 billion<\/strong>, underlining the widening supply gap. To support the local market, the government is considering <strong>removing the 18% sales tax<\/strong> on local cotton, a move that could boost domestic competitiveness.<\/p>\n\n\n\n<p>Looking ahead to FY26, cotton production is expected to recover, aided by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Early sowing in Punjab<\/li>\n\n\n\n<li>Increased cultivation area<\/li>\n\n\n\n<li>Better crop yields<\/li>\n<\/ul>\n\n\n\n<p>This could stabilize local cotton prices and reduce dependency on imports, good news for textile manufacturers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Policy update: leveling the playing field<\/h2>\n\n\n\n<p>One major issue remains: local cotton is taxed at 18%, while <strong>imported cotton is tax-exempt<\/strong>. This policy imbalance hurts domestic farmers and local spinners. Policymakers are now looking at revising this to <strong>support the local cotton industry<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Takeaway for investors<\/h2>\n\n\n\n<p>Pakistan\u2019s textile industry is showing resilience. Strong value-added export growth, recovering global demand, and expected improvement in local cotton output set a positive tone for FY26. However, structural issues like tax policy and weather-related crop volatility remain key risks.<\/p>\n\n\n\n<p>If cotton yields recover and policy support materializes, <strong>textile stocks could offer upside in FY26<\/strong>, especially those with strong exports in value-added segments.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pakistan\u2019s textile sector showed modest growth in FY25, with total exports increasing by 7% year-on-year, reaching USD 17.9 billion (vs USD 16.7 billion in FY24). This rebound was powered by stronger performance in value-added products like knitwear, bed linen, and ready-made garments, key pillars of Pakistan\u2019s textile exports.<\/p>\n","protected":false},"author":9252,"featured_media":9640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138,343],"tags":[273],"class_list":["post-10149","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","category-sector-analysis","tag-textile-sector"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/06\/Top-X-Stocks5-1140x445.jpg",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/06\/Top-X-Stocks5-463x348.jpg",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/06\/Top-X-Stocks5-300x188.jpg",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/06\/Top-X-Stocks5.jpg",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=10149"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10149\/revisions"}],"predecessor-version":[{"id":10150,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10149\/revisions\/10150"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/9640"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=10149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=10149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=10149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}