Pakistan Textile Council warns high taxes, energy costs and cotton shortages are hurting export competitiveness

Pakistan’s textile exports edged up 0.3% to $18 billion in FY2025-26, but the Pakistan Textile Council says high taxes, costly energy and a shrinking cotton crop are undermining the sector’s ability to compete abroad. Its first annual export report urges tax changes, faster refunds, reliable energy supplies and steps to rebuild domestic cotton production.

Textiles made up about 60% of Pakistan’s exports, even as total exports fell 5.9% to $30.14 billion. Cotton output dropped to 5.5 million bales, while exports of raw and intermediate textile goods slid 3.4% to $3.03 billion; value-added apparel exports rose 1.1% to $14.98 billion. The council also called for trade agreements and export financing support, and recommended expanding Pakistan National Shipping Corporation’s capacity to serve exporters.