By Qudsia Bano

Pakistan’s textile and apparel exports to the European Union declined to $7.103 billion in FY2025-26 from $7.248 billion a year earlier, with six of the 10 leading product categories recording lower sales in the country’s largest textile and apparel export market.

According to the Pakistan Textile Council’s Annual Export Performance Report: Pakistan’s Textile & Apparel Exports FY26, available with Wealth Pakistan, exports to the EU-27 fell by about 2% during the year.

Despite the decline, the EU remained Pakistan’s largest textile and apparel export destination, ahead of the United States at $4.853 billion and the United Kingdom at $1.730 billion.

The report shows that six of Pakistan’s top 10 textile and apparel products exported to the EU registered declines during the year, while the remaining four recorded increases, although one was almost unchanged.

The largest export item, men’s and boys’ cotton ensembles, not knitted, fell 15.4% to $783 million from $925 million, accounting for a significant decline among the leading products.

Cotton mill-made towels, Pakistan’s second-largest textile export item to the EU, slipped 1.6% to $428 million from $434 million, while other cotton bed linen declined 6.1% to $250 million from $267 million.

Jerseys made from other textile materials fell 8.4% to $233 million from $254 million, while cotton hosiery declined 3.5% to $183 million from $190 million. Knitted or crocheted bed sheets also edged down 0.9% to $228 million from $230 million.

Some major product categories, however, recorded gains.

Exports of men’s and boys’ cotton trousers increased 5% to $411 million from $391 million, while cotton mill-made bed sheets rose 6.6% to $279 million from $262 million. Cotton mill-made bed covers increased 1.8% to $278 million from $273 million.

Another category of men’s and boys’ trousers remained virtually unchanged at $222 million, posting marginal growth of 0.03%.

The product mix underscores the continuing importance of cotton apparel and made-up textile products in Pakistan’s trade with the EU. Towels and bed linen remain important components of the export basket, alongside major apparel categories.

The EU’s importance extends beyond its position as Pakistan’s largest textile and apparel export destination. Together, the EU, the United States and the United Kingdom account for the overwhelming share of Pakistan’s textile and apparel exports, leaving the sector exposed to demand shocks in a limited number of major markets.

The Pakistan Textile Council identified the continuity of preferential access to the European market as a major concern for the industry.

According to the council’s industry assessment, non-continuity of Pakistan’s GSP+ status is the single largest perceived risk, with the concern further aggravated by the EU-India FTA. The council called for ensuring continuity of GSP+ status while making efforts to pursue a free trade agreement with the EU.

Market access also forms part of the council’s broader policy recommendations for strengthening textile exports. The report recommends securing long-term continuity of GSP+ and pursuing additional trade agreements, including free trade agreements with the United States and the United Kingdom, to match preferential access available to competing countries.

The decline in exports to the EU came as Pakistan’s overall textile and apparel exports edged up 0.3% to $18 billion in FY2025-26 from $17.95 billion a year earlier, even as the country’s total national exports declined 5.9%.

With the EU remaining Pakistan’s largest textile and apparel export destination, the fall in FY2025-26 underscores the importance of safeguarding preferential market access and strengthening the performance of key apparel and home-textile products in the bloc.

Credit: INP-WealthPk