Pakistan’s textile sector posted a 15.7% export growth in 2025, generating $17.85 billion. Despite this increase, experts warn that 2026 may bring challenges due to global tariff changes and strategic shifts in major markets like the US and China.
Under CPEC 2, Chinese textile companies have established units in Pakistan, leveraging integrated supply chains and lower tariffs. While these investments can enhance production efficiency, they also pose stiff competition to local mills that rely heavily on imported raw materials.
Domestic hurdles such as rising energy costs, political instability, and high taxes further strain the industry. Stakeholders emphasize the urgent need for policy support, energy rationalization, and exploration of new markets in Africa and Central Asia to sustain export growth and competitiveness.
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