LAHORE: Pakistan’s textile exports rose by 11.11% year-on-year (YoY) in April 2025, despite ongoing economic and policy challenges. However, on a month-on-month (MoM) basis, growth remained largely stagnant, edging up by just 0.043%.
According to data released by the State Bank of Pakistan (SBP) on Friday, textile shipments for April 2025 totaled $1.444 billion, compared to $1.3 billion in April 2024 and slightly up from $1.443 billion in March 2025.
Over the first ten months of the current fiscal year (July-April 2024-25), total textile exports reached $14.48 billion — a 6.8% increase from $13.56 billion during the same period last year.
Industry stakeholders view the modest growth as a positive indicator for the sector, especially considering global uncertainty stemming from a revised US tariff policy introduced by President Donald Trump. The US administration implemented increased tariffs on imports from 57 countries in early April, ranging from 11% to 50%, set to take effect on April 9. However, a 90-day suspension was granted to all countries except China, giving them time to negotiate tariff reductions. A 10% base tariff and additional 25% sector-specific tariffs remain in place during this period.
Pakistan was hit with a 29% reciprocal tariff in response to its own 58% duties on US imports. In response, Islamabad has proposed a zero-tariff bilateral trade agreement, especially after Trump brokered a ceasefire between Pakistan and India, using trade negotiations as leverage.
Experts in the textile sector emphasize that while Pakistan has an opportunity to strengthen exports to the US, a clear and strategic policy framework is essential. Without it, India — which already offers zero tariffs to the US — could gain a competitive edge.
Despite ongoing efforts to revitalize the textile industry, high energy costs and lack of value-added production remain significant challenges. Analysts believe that if the US accepts Pakistan’s zero-tariff offer, the trade balance could still tilt in America’s favor, with Pakistani textile goods becoming more affordable for US consumers.
“There’s a risk that we may lose ground in the textile sector due to our limited value addition,” a textile mill owner said. “While the deal should ideally benefit both countries, real progress will depend on government support in the form of subsidies and tax relief.”
The sector hopes to surpass last year’s record exports of $16.31 billion, but experts warn that without a cohesive policy to integrate the entire textile value chain, future gains could be at risk.
