Higher US tariffs on its regional peers like India, improved value-added categories and a robust global demand led to a surge in Pakistan’s textile exports in September, according to a report released by the State Bank of Pakistan (SBP) on Saturday.
The textile sector alone accounted for nearly 60 per cent of the country’s total goods exports during the month, with shipments of knitted apparel touching an all-time high of USD 485 million, the report stated, adding that Pakistan’s September textile exports stood at a three-year-high of USD 1.6 billion.
Humera Nawaz, a financial analyst at Arif Habib Investments, also attributed a stable exchange rate and strong trade linkages for the rise in exports figures, which reinstated the role of the country’s textile segment in being its economy’s backbone.
Amongst the major players, Gul Ahmed Textile Mills, a major exporter in Pakistan, is expected to post a profit after tax of PKR 2.4 billion, up 6 per cent from last year; while Nishat Mills is projected to earn PKR 1.3 billion, up 41 per cent.
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A senior procurement manager in Nishat Mills said that the textile industry could be more profitable, but there have been yarn shortages due to damage to the cotton crop caused by recent rains, forcing many manufacturers to import yarn, which led to increased costs due to payments in dollar.
Yet, many challenges remain, Nawaz cautioned. These include high energy costs, expensive financing, and cotton supply disruptions that affect long-term competitiveness.
She said, however, that studies projected that profitability across Pakistan’s listed textile companies would rise by nearly three times year-on-year in the first quarter of FY-26, supported by higher export volumes and lower borrowing costs, and Pakistan’s advantage when it came to US tariffs.
Despite the pressures, exporters of bed linen, towels, home textiles, hosiery, and knitwear continue to expand their global footprint.
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