Pakistan’s Textile Exports Rise 9.38% in FY2025 Despite Challenges from US Tariffs

By,

Miyuru Rasoj

Photo Credit- stratheia

Pakistan’s textile sector has shown notable resilience and growth in the fiscal year 2025, with textile and apparel exports increasing by 9.38% during the first nine months of the fiscal year.

According to the Pakistan Bureau of Statistics, exports reached $13.62 billion in July-March 2024-25, up from $12.44 billion during the same period last year.

This growth marks a continuation of positive momentum, with March 2025 alone witnessing a 9.97% year-on-year increase to $1.43 billion.

Key Drivers of Growth

The growth was largely driven by value-added textile segments such as ready made garments, which surged by over 19% in value, alongside significant gains in woven garments and bedwear exports. Bedwear exports alone rose 19% year-on-year to $256 million in March 2025.

These segments have benefited from increased global demand, particularly from Western markets, as inflation eases and consumer spending recovers.

Despite this encouraging growth, structural challenges persist.

Exporters have called for faster refunds and enhanced incentives to unlock the sector’s full potential, as Pakistan’s textile industry has a capacity to reach $25 billion in exports but has experienced stagnation over the past two years.

Impact of US Tariffs on the Textile Industry

However, the industry faces significant headwinds due to recent US tariffs imposed on Pakistani textile exports.

The United States introduced a 44% import tariff on approximately $3 billion worth of Pakistani exports, including key textile products.

This tariff has created uncertainty and pressure on Pakistan’s textile exporters, who rely heavily on the US market.

The tariffs are widely seen as a response to concerns over trade practices and political issues, but they have hit the textile sector hard, which employs hundreds of thousands of workers and contributes over half of Pakistan’s total exports.

Industry stakeholders warn that these tariffs could dampen export growth, reduce competitiveness, and threaten jobs in the sector.

In response, Pakistani authorities and industry leaders have urged the US to reconsider the tariffs, emphasizing Pakistan’s compliance with international trade norms and the importance of the textile sector for economic stability and employment.

Meanwhile, exporters are seeking diversification of markets and value addition to mitigate the impact.

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