Pakistan Textile Exports down 2% in Sep-2025

 Pakistan Textile exports clocked in at US$1.6bn in Sep 2025, down 2% YoY while up 3% MoM. In 1QFY26 Textile Exports reach US$4.8bn up 6% from US$4.5bn in 1QFY25.

The 2% YoY decline in exports in Sep 2025 was primarily driven by a 25% YoY drop in cotton cloth exports, which fell to US$150mn from US$200mn in Sep 2024.

The 3% MoM increase in Sep 2025 exports was primarily driven by a 4% MoM rise in the value-added segment, led by 4% growth in knitwear and 7% growth in bedwear.

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In PKR terms, Pakistan Textile exports clocked in at Rs443bn down 1% YoY while up 3% MoM.

The value-added segment remained flattish YoY but rose 4% MoM in Sep 2025. Knitwear exports increased 4% YoY and MoM to US$465mn, while other value-added segments such as bedwear, towels, and readymade garments recorded YoY declines of 1%, 5%, and 3%, respectively, and MoM changes of +7%, +1%, and flattish, reaching US$288mn, US$86mn, and US$329mn, respectively.

 The 6% YoY growth was driven by an 8% increase in value-added textiles (with knitwear up 12% YoY), while other segments rose 6% YoY. However, basic textiles declined 8% YoY due to a 14% drop in cotton cloth exports, mainly because of low cotton crop in previous months, lower international demand and pricing pressures.

In PKR terms, Pakistan Textile exports clocked in at Rs1,351bn in 1QFY26, up 7% YoY. This was due to a 1% appreciation in rupee in 1QFY26 compared to 1QFY25.

In quantity terms, in Sep 2025 textile exports saw a 2% fall YoY while a 5% MoM rise. Overall, quantities in 1QFY26 increased by 4% YoY.

We believe in FY26 exports will reach US$19-20bn as compared to US$17.9bn in FY25,” Topline said.

 Textile exports have seen a recovery in the last 2 years and we expect further recovery in textile exports going forward.

We maintain our overweight stance on Pakistan textile sector wherein NML is preferred pick as company is trading at FY26E PE of 8.1x.