{"id":11355,"date":"2025-08-22T16:51:11","date_gmt":"2025-08-22T11:51:11","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11355"},"modified":"2025-08-22T16:51:13","modified_gmt":"2025-08-22T11:51:13","slug":"pakistans-textile-exports-jump-32-in-july-2025-whats-driving-the-growth","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/pakistans-textile-exports-jump-32-in-july-2025-whats-driving-the-growth\/","title":{"rendered":"Pakistan\u2019s Textile Exports Jump 32% in July 2025: What\u2019s Driving the Growth?"},"content":{"rendered":"\n

Pakistan\u2019s textile industry has started FY25 on a strong note. In July 2025<\/strong>, textile exports rose by 32% year-on-year (YoY)<\/strong>, reaching USD 1.7 billion<\/strong> compared to USD 1.3 billion<\/strong> in the same month last year. On a monthly basis, exports were also up 10%<\/strong> from June.<\/p>\n\n\n\n

What\u2019s behind the surge?<\/h2>\n\n\n\n

Several factors worked in Pakistan\u2019s favor:<\/p>\n\n\n\n

    \n
  • US-Pakistan Trade Deal:<\/strong> From August 7, 2025, Pakistani textile products face a 19% tariff<\/strong> in the US. This is lower than India\u2019s 25%<\/strong>, Vietnam\u2019s 20%<\/strong>, and Bangladesh\u2019s 20%<\/strong>. This gives Pakistan a competitive edge<\/strong> in one of its largest export markets.<\/li>\n\n\n\n
  • Improved Raw Material Prices:<\/strong> Lower costs for inputs helped boost margins and competitiveness.<\/li>\n\n\n\n
  • Seasonal Demand:<\/strong> Summer months brought stronger global demand for textile products.<\/li>\n<\/ul>\n\n\n\n

    Segment-wise breakdown<\/h2>\n\n\n\n

    The growth was especially strong in value-added textiles<\/strong> (products that require more design, finishing, and labor):<\/p>\n\n\n\n

      \n
    • Knitwear<\/strong> up 44% YoY<\/strong><\/li>\n\n\n\n
    • Bed wear<\/strong> up 38% YoY<\/strong><\/li>\n\n\n\n
    • Towels<\/strong> up 34% YoY<\/strong><\/li>\n\n\n\n
    • Ready-made garments<\/strong> up 35% YoY<\/strong><\/li>\n\n\n\n
    • Made-up articles<\/strong> (like household textiles) up 45% YoY<\/strong><\/li>\n<\/ul>\n\n\n\n

      On the other hand, basic textiles<\/strong> like yarn and cloth only grew about 1% YoY<\/strong>. This shows that Pakistan is moving toward more value-added exports<\/strong>, which generally bring in higher earnings.<\/p>\n\n\n\n

      Challenges on the supply side<\/h2>\n\n\n\n

      Not everything is smooth sailing. Cotton, the backbone of the textile industry, is facing problems:<\/p>\n\n\n\n

        \n
      • Cotton arrivals fell 17% YoY<\/strong> to 887,000 bales<\/strong> due to heatwaves, water shortages, and pest attacks in Sindh and Punjab.<\/li>\n\n\n\n
      • To cover the shortfall, Pakistan\u2019s raw cotton imports jumped 2.8x YoY<\/strong> to USD 143 million<\/strong> in July 2025.<\/li>\n\n\n\n
      • Local cotton prices stayed stable at PKR 16,200 per maund<\/strong>.<\/li>\n<\/ul>\n\n\n\n

        Looking ahead, cotton production in FY26 is expected to improve thanks to larger cultivation areas and better yields. However, monsoon floods<\/strong> remain a big risk.<\/p>\n\n\n\n

        Policy impact<\/h2>\n\n\n\n

        The government has approved an 18% sales tax on imported cotton, yarn, and grey fabric<\/strong>, making imports less competitive. This could encourage mills to buy more local cotton. But plans to remove sales tax on local cotton haven\u2019t yet moved forward, which continues to be a concern.<\/p>\n\n\n\n

        Why does it matter?<\/h2>\n\n\n\n

        Textiles account for the largest share of Pakistan\u2019s exports<\/strong>. The strong performance in July signals good momentum for FY25, especially with:<\/p>\n\n\n\n

          \n
        • Lower tariffs in the US market<\/li>\n\n\n\n
        • Growing demand for value-added products<\/li>\n\n\n\n
        • Stable raw material costs (despite cotton shortages)<\/li>\n<\/ul>\n\n\n\n

          If local cotton issues are managed, Pakistan\u2019s textile sector could see a sustained recovery<\/strong> in FY25 and FY26.<\/p>\n\n\n\n

          Source: Taurus Securities Limited<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

          Pakistan\u2019s textile industry has started FY25 on a strong note. In July 2025, textile exports rose by 32% year-on-year (YoY), reaching USD 1.7 billion compared to USD 1.3 billion in the same month last year. On a monthly basis, exports were also up 10% from June.<\/p>\n","protected":false},"author":11,"featured_media":9640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[153],"tags":[273],"class_list":["post-11355","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","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\/11355","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\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=11355"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11355\/revisions"}],"predecessor-version":[{"id":11356,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11355\/revisions\/11356"}],"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=11355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}