By Moaaz Manzoor

Pakistan’s value-added textile exports recorded strong growth in May 2026, helping lift overall exports during the month despite continued pressure on the country’s cumulative export performance, according to provisional commodity-wise data released by the Pakistan Bureau of Statistics (PBS).

The textile group remained the largest contributor to Pakistan’s export earnings, with knitwear, readymade garments and bedwear leading the increase in export receipts. Overall exports rose to $2.69 billion in May from $2.47 billion in April, reflecting a 9.0 percent month-on-month increase.

Among the major export categories, knitwear generated Rs124.25 billion in export proceeds during May, up 7.62 percent from April and 0.92 percent from the same month last year. Readymade garments recorded one of the strongest performances, rising 17.94 percent month-on-month and 9.47 percent year-on-year to Rs115.41 billion.

Bedwear exports climbed 20.12 percent from April to Rs79.51 billion, while towel exports increased 17.80 percent to Rs29.23 billion. Cotton cloth exports remained largely stable at Rs40.64 billion, declining marginally by 0.11 percent compared with the previous month but registering a 6.54 percent increase over May 2025.

The strong performance of these categories highlights the continued importance of value-added textile products in Pakistan’s export basket. Together, knitwear, garments, bedwear and towels accounted for a substantial share of the country’s export earnings during the month.

Not all segments, however, performed equally well. Cotton yarn exports declined 23.97 percent month-on-month to Rs16.73 billion, although they remained 39.72 percent higher than a year earlier. Similarly, exports of made-up articles excluding towels and bedwear increased 6.34 percent over April but remained below last year’s level.

The May data suggests that demand for value-added textile products remained relatively resilient compared to lower value-added segments. This helped offset weakness in some other export categories and contributed to the overall increase in exports during the month.

The resilience of value-added textiles was also evident in the cumulative July-May FY2025-26 data. The textile group generated export earnings of $16.67 billion during the first 11 months of the fiscal year, compared with $16.37 billion in the corresponding period last year, reflecting an increase of 1.83 percent.

Within the sector, knitwear exports rose 1.03 percent to $4.60 billion, readymade garments exports rose 5.43 percent to $3.97 billion, bedwear increased 2.23 percent to $2.90 billion, and cotton yarn exports climbed 13.35 percent to $701.10 million. However, tents, canvas & tarpulin exports slipped by 4.29 percent to $112 million, while cotton cloth exports declined 7.47 percent to $1.56 billion.

The improvement also comes as the government seeks to accelerate export growth under the FY2026-27 budget. Measures announced in the budget include the extension of the final tax regime for exporters until June 2029 and a reduction in advance tax on exports from 2 percent to 1.25 percent, aimed at improving liquidity and competitiveness for export-oriented industries.

Despite the encouraging monthly performance, broader export trends remain challenging. During July-May FY2025-26, Pakistan’s total exports declined 5.67 percent to $27.89 billion from $29.56 billion in the corresponding period of the previous fiscal year, indicating that exporters continue to face a difficult external environment.

Nevertheless, the latest PBS figures reinforce the textile sector’s position as the backbone of Pakistan’s export economy. Continued growth in value-added segments such as garments, knitwear and home textiles will be critical to boosting export earnings, narrowing the trade gap and strengthening the country’s external account position in the coming fiscal year.

Credit: INP-WealthPk