By Qudsia Bano

Pakistan’s textile exports to China increased 22.2% to $644 million in FY2025-26, driven mainly by higher shipments of cotton yarn and unbleached woven fabric, making China the fastest-growing of the country’s five leading textile export markets during the year.

According to the Pakistan Textile Council’s Annual Export Performance Report: Pakistan’s Textile & Apparel Exports FY26, available with Wealth Pakistan, exports to China rose from $527 million in FY2024-25 to $644 million in FY2025-26.

China remained Pakistan’s fourth-largest textile export destination after the European Union, the United States and the United Kingdom. Unlike these major markets, which primarily absorb finished textile and apparel products, China is predominantly a raw-material market for Pakistan, with cotton yarn forming the bulk of shipments.

Two major cotton yarn categories accounted for most of the trade. Exports under HS code 52051100 rose 33.2% to $276.4 million from $207.5 million, while shipments under HS code 52051200 increased 20.3% to $266.7 million from $221.7 million.

Together, the two categories generated $543.1 million, equivalent to about 84% of Pakistan’s total textile exports to China during FY2025-26.

An even sharper increase was recorded in a smaller fabric category. Exports of unbleached cotton woven fabric weighing more than 100 grams per square metre under HS code 52081200 more than doubled to $21.6 million from $10.6 million, registering growth of 103.9%.

The performance of finished apparel in the Chinese market was considerably weaker. Exports of men’s and boys’ trousers under HS code 61034900 declined 62.3%, while cotton-knit trousers under HS code 61034200 fell 35.8%. Jersey exports dropped 32.4% and cotton hosiery declined 16%.

The report said cotton yarn and unbleached woven fabric were driving demand in the Chinese market, while apparel lines remained relatively small and were mostly declining.

The Pakistan Textile Council, however, cautioned against interpreting the increase as evidence of a broad improvement in Pakistan’s competitiveness.

It described the development as a “demand-pull, not a competitiveness win,” saying Chinese mills were turning towards Pakistani cotton yarn as their domestic supply tightened, supported by Pakistan’s relative price competitiveness.

According to the report, the increase was driven by conditions on the Chinese side rather than any fundamental change in Pakistan’s export offering.

The report also noted that Pakistan’s yarn exports to China are highly sensitive to Chinese domestic production, inventories, domestic prices and the relative prices offered by competing suppliers. Constraints in Pakistan’s own cotton supply also matter substantially.

The increase in exports to China stands out against broader weakness in Pakistan’s upstream textile segment. Overall exports of raw materials and intermediates under Chapters 50-60 declined 3.4% to $3.026 billion in FY2025-26 from $3.133 billion a year earlier.

Cotton under Chapter 52 alone accounted for more than 80% of raw materials and intermediate exports, reaching $2.486 billion despite declining 1.5% during the year.

China’s increased purchases therefore provided an important outlet for Pakistani cotton yarn at a time when the country’s overall upstream textile exports remained under pressure.

The report noted that sustaining such exports would remain closely linked to Chinese production, inventories and relative prices as well as Pakistan’s own cotton availability. Its broader recommendations call for strengthening the domestic cotton base and improving the competitiveness and viability of the upstream textile industry.

Credit: INP-WealthPk