Islamabad:
Pakistan’s textile and apparel exports suffered a broad decline in its three biggest markets, the European Union, the United States and the United Kingdom, in the first half of 2016, signaling a deepening competitiveness crisis for the country’s biggest export sector.
Pakistan Textile Council (PTC) chairman Fawad Anwar said the downturn is not limited to a single product or destination but reflects systemic weaknesses in the cost of doing business, according to a statement issued on Wednesday. Textiles and clothing, Pakistan’s largest export industry, face immediate risks to foreign exchange earnings, employment and industrial capacity utilization, he warned.
An analysis of export trends for knitwear, woven and home textile products shows a steady weakening over the six-month period, with November and December appearing as the lowest point. The decline was visible across all major categories and markets simultaneously.
“The data confirms that this is not a demand side or market access issue. It is essentially a cost of doing business and competitiveness crisis,” Anwar said. “When exports decline across all major product categories and markets at the same time, the problem is systemic.”
He noted that while Pakistan’s exports weakened, competitive economies boosted government support for industry. Despite trade tensions, China recorded a trade surplus of nearly $1 trillion in the first eleven months of 2025, supported by diversification and sustained industrial support. India approved a $5 billion export support package, while Vietnam introduced tax breaks, improved access to industrial land and targeted incentives.
“In this context, Pakistan’s exporters are forced to compete globally with structurally higher energy costs, fragmented taxation, delayed refunds and unpredictable politics,” Anwar said.
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