By S.M. Inam
KARACHI: Pakistan’s textile sector, a cornerstone of the country’s export economy, witnessed a 6.34% decline in exports in February 2026, as rising business costs and regional instability weighed on the industry.
Official trade documents show that textile exports fell to $1.33 billion in February 2026, down from $1.42 billion in February 2025. Analysts attribute the decline to rising operational costs and the impact of escalating geopolitical tensions in the region.
Rising freight and shipping costs
Exporters are facing higher freight charges and shipping costs, which are expected to rise further due to regional instability. These additional logistics expenses have increased the financial pressure on Pakistan’s textile industry, making its products less competitive in international markets.
Slight annual growth despite monthly drop
Despite the monthly decline, Pakistan’s textile exports recorded modest growth over the first eight months of the fiscal year. From July 2025 to February 2026, textile exports totaled $12.29 billion, compared to $12.19 billion during the same period last year—a 0.82% increase.
Overall goods exports slip
The broader export sector also faced challenges, with total domestic goods exports falling by 7.30% during the same eight-month period, declining from $22.07 billion to $20.46 billion. This highlights pressures across multiple export-oriented industries.
Trade deficit widens
Meanwhile, Pakistan’s import bill increased by 8%, reaching $45.50 billion, resulting in a widened trade deficit of more than $25 billion, up 25% from the previous year.
Economists warn that continued increases in freight costs, energy prices, and ongoing geopolitical tensions could further hinder Pakistan’s export performance. The textile sector, which accounts for a major share of the country’s exports, remains particularly vulnerable to fluctuations in regional stability and international market conditions.
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