Pakistan’s textile sector, the backbone of the country’s exports, faced a setback in February 2026 as shipments declined amid rising business costs and regional tensions.
Official documents show that textile exports dropped by 6.34% during the month, reflecting growing pressure on exporters.
According to official trade documents, Pakistan’s textile exports fell to $1.33 billion in February 2026. This represents a 6.34% decrease compared to February 2025, when textile exports stood at $1.42 billion.
Industry analysts say regional tensions and rising operational costs are contributing factors behind the decline.
Rising freight costs
Exporters are also facing higher freight and shipping costs, which are expected to increase further due to regional geopolitical tensions.
These rising logistics expenses are adding to the financial burden on Pakistan’s textile industry, making exports less competitive in international markets.
Slight annual increase in exports
Despite the monthly drop, Pakistan’s textile exports recorded a slight increase on an annual basis during the first eight months of the fiscal year.
From July to February, textile exports totaled $12.29 billion, compared to $12.19 billion during the same period last fiscal year.
This reflects a modest growth of 0.82% in textile exports during the first eight months.
Overall goods exports decline
The broader export sector also experienced a decline during the same period. Total domestic goods exports fell by 7.30% in the first eight months, according to official documents.
Exports dropped from $22.07 billion to $20.46 billion between July and February, highlighting challenges faced by multiple export-oriented industries.
Widening trade deficit
Meanwhile, Pakistan’s import bill continued to rise during the same period. Imports increased by 8% over eight months, reaching $45.50 billion.
As a result, the country’s trade deficit widened by 25%, exceeding $25 billion, according to the document.
Economists warn that rising costs, geopolitical tensions, and global market uncertainty could continue to impact Pakistan’s export performance.
The textile sector, which accounts for a major share of the country’s exports, remains particularly sensitive to changes in freight costs, energy prices, and regional stability.
