By Staff Reporter
ISLAMABAD: Pakistan’s textile and apparel exports, the linchpin of the nation’s economy, rose nearly 10% year-on-year to $3.2 billion in the first two months of the fiscal year, driven by robust demand for knitwear and readymade garments, official data showed.
Meanwhile, the country’s IT sector, an emerging bright spot, posted an 18% increase in exports to $691 million, reinforcing its role as a key contributor to foreign exchange earnings.
The textile sector, which accounts for more than half of Pakistan’s total exports and employs nearly 40% of the industrial workforce, remains critical to the South Asian nation’s economic stability, contributing roughly 8.5% to GDP. However, high energy costs, aging infrastructure, and policy uncertainty continue to hamper its competitiveness against regional rivals like Bangladesh.
“The textile exports from the country were recorded at US $3.203 billion during July–August (2025–26) against the exports of US $2.915 billion during July–August (2024–25),” the state-run Associated Press of Pakistan reported. Knitwear exports led the charge, surging 16.9% to $959 million, while readymade garments climbed 10.6% to $728 million. Bedwear shipments rose 12% to $565 million, and towels increased 4.8% to $179 million. Other categories, including cotton yarn and synthetic textiles, also posted gains, though exports of tents, canvas, and tarpaulin slumped 18.3% to $16 million.
Despite the annual growth, a 9.3% month-on-month decline in August compared to July underscored persistent volatility in the sector, which analysts attribute to fluctuating global demand and domestic supply constraints.
Commerce Minister Jam Kamal last month unveiled a five-year Textiles and Apparel Policy alongside a National Industrial Policy, aimed at boosting the sector’s regional competitiveness. The policies focus on removing trade barriers, modernizing infrastructure, and ensuring stable, long-term export growth. Analysts say consistent implementation will be key to sustaining the momentum.
IT Exports
Pakistan’s IT exports, the country’s third-largest export category after textiles and rice, continued their upward trajectory, rising 18% to $691 million in July-August from $584 million a year earlier, according to State Bank of Pakistan data. The sector, which dominates services exports, has benefited from government-backed initiatives to penetrate new markets and increased participation in global tech fairs and trade roadshows in the U.S., U.K., Europe, and the Gulf Cooperation Council region.
“Pakistan’s IT exporters are doing a tremendous job in enhancing the export income of the IT industry and supporting the macroeconomic indicators, including the current account of the country,” said Muhammad Umair Nizam, senior vice chairman of the Pakistan Software Houses Association. He urged the government to maintain supportive policies to sustain the sector’s growth and address lingering challenges, including regulatory hurdles and infrastructure gaps.
The IT sector’s performance has been bolstered by financial incentives and measures from the Ministry of Information Technology and Telecommunication and the central bank. Freelancers, a growing force in the industry, have also played a pivotal role. “The role of freelancers is instrumental in increasing exports,” said Ibrahim Amin, chairman of the Pakistan Freelancers Association, citing ongoing training and capacity-building programs that are swelling the ranks of skilled professionals.
Despite the gains, both sectors face headwinds. In textiles, high energy costs and outdated machinery continue to erode margins, while policy uncertainty deters long-term investment. The IT sector, while promising, must navigate challenges posed by rapid technological shifts, particularly the rise of artificial intelligence tools. “AI tools are helpful but they are also posing challenges to the business of IT companies and freelancers,” said Noman Ahmed Said, an IT exporter. He argued that IT firms and freelancers must upgrade their skills and pursue joint ventures to compete for major projects in foreign markets.
Said estimated that monthly IT export receipts need to reach $400 million to $450 million to meet the government’s ambitious $5 billion target for the fiscal year. “This is easily achievable in the coming months,” he said, provided the government collaborates with exporters to provide cost-effective solutions and a stable regulatory environment.
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