Updates on Pakistan's textile exports, cotton crop, polyester prices and trade policy, with what each one means for garment factories and thread buyers.
2026
Business community
Vision Alliance sweeps LCCI elections; Ali Hassam Asghar elected president
Vision Alliance candidates won the Lahore Chamber of Commerce and Industry elections 2026, with 15 seats in the Corporate Class and 15 in the Associate Class after polling on 23 and 24 September. Ali Hassam Asghar was then elected LCCI President unopposed, with Sardar Usman Ghani as Senior Vice President and Khadim Hussain as Vice President.
What it means for buyers: Lahore's business community, including many textile and garment firms, has new chamber leadership to raise issues such as energy costs and refunds with the government.
Pakistan exported textiles worth about $3.38 billion in the first two months of FY2026-27, up from $3.20 billion a year earlier, according to Pakistan Bureau of Statistics figures. Readymade garments grew about 13.6% and cotton yarn about 35%, while cotton cloth fell around 7.7%.
What it means for buyers: Garment and knitwear factories are busier, which usually means steady demand for sewing thread in the coming months.
Cotton arrivals reach 2.39 million bales by mid-September
Cotton arriving at ginning factories reached nearly 2.39 million bales by 15 September, about 19% more than the same point last season, according to the Pakistan Cotton Ginners Association. Textile mills bought most of the cotton sold so far.
What it means for buyers: A larger local crop can ease raw material costs for spinners, which affects cotton and blended yarn prices.
With arrivals up around 27% by the end of August, local cotton prices slipped by roughly Rs500 to 700 per maund to about Rs18,600 to 18,800. Reports also mentioned delays at ports for containers of imported cotton and other textile inputs.
What it means for buyers: Port delays on imported inputs can stretch lead times, so it is worth planning thread and yarn orders a little earlier.
Textile exports in July 2026 came to about $1.81 billion, around 8% higher than July 2025, based on PBS data. Cotton yarn exports grew strongly, while synthetic textiles were lower than a year earlier.
What it means for buyers: A strong start to the fiscal year points to healthy order books at export garment units.
Coats reports growth in recycled thread despite industry destocking
Coats, the world's largest industrial thread maker, said revenue from its 100% recycled thread reached $297 million in the first half of 2026, around 11% higher than a year earlier. Its apparel business grew about 1% on an organic basis while customers across the industry kept inventories lean.
What it means for buyers: Global brands keep asking for recycled thread. Buyers working for those brands may start asking for it in Pakistan too.
By 15 July 2026, about 527,900 bales of cotton had reached ginning factories, roughly 77% more than at the same point in 2025, according to the first PCGA report of the 2026-27 season. Sindh led the early increase.
What it means for buyers: An early, stronger crop is a good sign for spinning mills planning the year ahead.
FY2025-26 textile exports hold steady at about $17.9 billion
For the full fiscal year 2025-26, textile exports were almost unchanged at around $17.93 billion. Cotton yarn exports rose by about 12%, while knitwear, towels and cotton cloth were slightly lower.
What it means for buyers: A flat year overall, with growth shifting towards yarn and value-added garments.
Textile exports dropped to about $1.27 billion in June 2026, around 17% lower than a year earlier and 23% below May, according to an analysis of PBS data by Topline Securities. Imports rose to their highest monthly level in four years.
What it means for buyers: Seasonal dips around the fiscal year end are common, but a weak June usually tightens cash flow for suppliers too.
Polyester staple fibre prices in China weakened in mid-June 2026 after crude oil dropped to three-month lows when Middle East tensions eased. PTA, a main polyester raw material, also fell, while export orders for yarn mills stayed weak.
What it means for buyers: Lower polyester raw material costs can take some pressure off yarn and thread prices after the spring increases.
Textile exports for July to May of FY2025-26 reached about $16.67 billion, around 1.8% higher than the year before, according to PBS. May 2026 exports were about 7% higher than May 2025.
What it means for buyers: Growth is modest but positive, mostly from value-added categories.
The Pakistan Textile Council welcomed the Finance Bill 2026-27, including the end of super tax for exporters and a cut in the combined levy on export proceeds from 2% to 1.25%. The council asked for the 1.25% tax to be treated as a final tax.
What it means for buyers: Better cash flow for exporters usually helps them pay suppliers on time.
The All Pakistan Textile Mills Association said more than 140 factories had closed, wiping out about a third of the sector's capacity, and asked the budget to lower energy costs and clear pending tax refunds.
What it means for buyers: Fewer mills means less local yarn capacity, which can affect yarn availability and prices.
Government weighs Rs100 billion tax relief for exporters
The government considered removing the 1% advance tax on export proceeds in the 2026-27 budget, worth around Rs100 billion to exporters. Industry figures put Pakistan's industrial power tariff at about 11.5 US cents per unit, against about 6.3 cents in India and 8 cents in Vietnam.
What it means for buyers: Energy cost is the biggest gap with regional competitors, for garment units and thread makers alike.
Textile exports from July to April of FY2025-26 reached about $15.03 billion, up roughly 1.3% from the same period a year earlier, according to PBS. Readymade garments and bedwear were among the categories that grew.
What it means for buyers: Steady garment exports keep demand for sewing thread stable.
Ahead of the 2026-27 budget, the textile industry asked for lower turnover tax, a return of a fixed tax regime for exporters, and a gradual cut in sales tax from 18% towards 15%. APTMA also proposed lower sales tax rates on basic inputs such as cotton, man-made fibre and yarn.
What it means for buyers: Lower tax on inputs like yarn would reduce costs across the whole chain, down to thread and garments.
Nine-month textile exports slightly below last year
Textile exports for July to March of FY2025-26 were about $13.55 billion, around 0.5% lower than the year before, according to PBS. March 2026 exports were about 7% lower than March 2025.
What it means for buyers: Exports were under pressure in early 2026, with tariffs and higher costs weighing on orders.
Japanese maker raises polyester fibre and yarn prices by 20%
Teijin Frontier raised prices for polyester filament, staple fibre and spun yarn by 20% or more from 7 April 2026, citing higher crude oil and petrochemical costs after disruption in the Middle East, as well as logistics and labour costs.
What it means for buyers: A clear sign that polyester costs were rising worldwide in spring 2026.
The conflict in the Middle East pushed crude oil prices up sharply, and polyester prices followed. In China, polyester POY rose above RMB 7,000 per tonne, with some polyester products up by as much as 15%.
What it means for buyers: Polyester thread and yarn prices tend to follow oil with a short delay.
Textile exports fell to about $1.31 billion in February 2026, around 7% lower than a year earlier and about 25% below January, according to PBS. Most major categories declined, while cotton yarn exports increased.
What it means for buyers: A softer month for export orders after a strong January.
Pakistan produced about 5.61 million bales of cotton in the 2025-26 season, around 1.5% more than the year before but about 45% short of the 10.2 million bale target, according to PCGA data.
What it means for buyers: A small local crop keeps the industry dependent on imported cotton and man-made fibres such as polyester.
Textile exports climbed to about $1.74 billion in January 2026, about 3% higher than January 2025 and nearly 29% above December, according to PBS. Seven-month exports reached about $10.9 billion.
What it means for buyers: January was the strongest month of the fiscal year for textile exports.
Garment exports reach $2.58 billion in seven months
Pakistan exported about 51 million dozen readymade garments worth about $2.58 billion from July to January of FY2025-26, up from about $2.44 billion a year earlier, according to PBS.
What it means for buyers: More garments shipped means more sewing thread used on Pakistan's sewing lines.
Polyester filament yarn prices in China held steady and then edged up in mid-January 2026 as Middle East tensions pushed crude oil and PTA prices higher, before easing again later in the week.
What it means for buyers: Early signs that oil-driven cost pressure was building for polyester products.
By 31 December 2025, about 5.43 million bales of cotton had reached ginning factories, almost the same as a year earlier, according to PCGA. Arrivals in Punjab were lower, while Sindh was slightly higher.
What it means for buyers: After a fast start, the 2025-26 crop ended up close to the previous year.
November textile exports dip, five-month total still up
Textile exports were about $1.42 billion in November 2025, around 2.6% lower than a year earlier and 12% below October, according to PBS. For July to November, exports reached about $7.82 billion, up 2.7%. Readymade garments grew about 9% in November.
What it means for buyers: Garment exports held up better than other categories.
US tariffs put part of Pakistan's export earnings at risk
A regional report estimated that the 19% US tariff could put about $0.49 billion of Pakistan's export earnings at risk, with textile hubs such as Faisalabad, Karachi and Lahore most exposed. The US is the largest market for Pakistan's textiles.
What it means for buyers: Factories selling mainly to the US may see more pressure on prices and order volumes.
Textile exports from July to October 2025 reached about $6.39 billion, almost 4% more than a year earlier, according to PBS. Knitwear rose about 8% and bedwear about 7%, while cotton cloth fell around 13%.
What it means for buyers: Knitwear growth means more demand for spun polyester thread on overlock and coverstitch machines.
By 15 November 2025, about 4.86 million bales of cotton had reached ginning factories, slightly below the same date a year earlier, after a much faster start to the season, according to PCGA.
What it means for buyers: The early-season boost in cotton supply faded as the season went on.
Textile exports rose to about $1.59 billion in September 2025, around 8% higher than a year earlier, according to PBS. Knitwear grew nearly 20%, and textiles made up more than 60% of Pakistan's total exports.
What it means for buyers: A strong quarter for knitwear, one of the biggest users of spun polyester thread.
About 3.04 million bales of cotton reached ginning factories by 30 September 2025, around 49% more than a year earlier, according to PCGA. Textile mills bought about 2.41 million bales.
What it means for buyers: Good early availability of cotton helped spinning mills after a slow start in July.
The United States set a 19% tariff on imports from Pakistan, down from the 29% first proposed in April 2025. Rates for India (25%) and for Bangladesh and Vietnam (20%) were higher, giving Pakistani textiles a small price advantage.
What it means for buyers: The US is Pakistan's biggest textile market, so the rate matters for most export garment units.
Only about 298,000 bales of cotton had reached ginning factories by 15 July 2025, around 33% fewer than a year earlier, according to the first PCGA report of the season. Arrivals in Sindh were down by more than half.
What it means for buyers: A slow start meant mills leaned more on imported cotton early in the season.
FY2024-25 textile exports grow 7% to $17.9 billion
Textile exports reached about $17.88 billion in FY2024-25, up around 7% from $16.68 billion the year before, but still below the $19.3 billion recorded in FY2021-22, according to PBS data.
What it means for buyers: A recovery year for exports, though not yet back to the peak.
Out of 568 textile mills, 187 had stopped operating because of high electricity costs, with 147 of the closures in Punjab, including Kasur, Multan and Faisalabad. The closures included polyester and man-made fibre mills.
What it means for buyers: Energy costs remain the main challenge for spinning and thread making in Pakistan.
News summaries are written by Solid Tex from public reports, for general information. Dates show when each news was reported. Figures are as reported by the sources linked; please check the original source before relying on them.
Weather in textile cities
Three-day forecast with humidity, useful for planning dyeing, drying and dispatch.
20+ years in sewing thread