The Pakistan Textile Council (PTC) has raised alarm over the continuing export slump, warning of serious risks to the country’s economy. Merchandise exports fell by 3.83 percent in the first quarter of FY26, according to official data.
Figures from the Pakistan Bureau of Statistics (PBS) show that export earnings stood at $7.61 billion during July–September, down from $7.91 billion in the same period last year. September proved particularly weak, with exports declining 11.71 percent year-on-year to $2.51 billion. This was the fifth month of contraction in the last six, underscoring the depth of the export slump.
At the same time, Pakistan’s trade deficit widened sharply. It reached $9.37 billion in the first quarter, compared with $7.05 billion last year. Imports surged by 13.49 percent, further straining external accounts. The textile sector, which remains Pakistan’s largest export driver, has been hit hardest by weak global demand and high local costs.
Industrial closures are also deepening the crisis. Gul Ahmed Textile Mills Limited recently shut down its export apparel division, citing rising input costs, higher taxation, and tough competition from regional rivals. The closure has put thousands of jobs at risk and reflects the pressures facing even leading firms. Beyond textiles, several multinational companies, including Microsoft, Procter & Gamble, Pfizer, and Shell, have scaled back or exited Pakistan in recent months. Policy unpredictability, expensive energy, and heavy taxes have been common challenges across industries.
PTC Chairman Fawad Anwar said these developments highlight deeper structural weaknesses in Pakistan’s business environment. He urged the government to adopt urgent reforms, including competitive energy pricing, faster tax refunds, labor cost alignment with regional economies, and stronger financing facilities.
Anwar warned that without swift action, more export-oriented firms could shut down, foreign investment could decline, and Pakistan’s foreign exchange reserves could come under greater pressure. He stressed that the council’s proposals are not calls for subsidies but efforts to ensure a fair playing field for local industries against competitors in Bangladesh, Vietnam, and India.
The PTC concluded that the export slump, if left unaddressed, will worsen job losses, reduce earnings, and weaken Pakistan’s already fragile economy.
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