Editorial
When Pakistan’s largest export sector signals collapse, the government cannot afford denial or delay. The Pakistan Textile Council (PTC) has called for an “Export Emergency,” and this is no lobbying slogan, it is a stark warning. Declining exports, factory closures, and mass layoffs show the crisis is already on the ground.
Textiles, the backbone of Pakistan’s industrial employment and foreign earnings, are at a breaking point. The PTC has urged Prime Minister Shehbaz Sharif to take urgent, coordinated measures to halt the erosion of competitiveness threatening exports, jobs, and macroeconomic stability. Exports fell over 14 percent year-on-year in November 2025, marking the fourth consecutive month of contraction. In the first five months of FY26, exports slid to $12.8 billion from $13.7 billion last year, while imports surged past $28 billion, producing a $15.5 billion trade deficit.
The root cause is structural. Pakistan’s textile costs, driven by high energy prices, inconsistent taxation, delayed refunds, and unpredictable policies, have made it uncompetitive internationally. Competitors like Bangladesh, Vietnam, and India operate with lower energy tariffs, stable tax regimes, and targeted support, while Pakistani exporters struggle with fragmented policies and trapped working capital.
Textiles remain Pakistan’s most powerful economic lever, contributing over 60 percent of exports and employing millions. Declines ripple across the economy, weakening the rupee, fueling inflation, and widening fiscal stress. An “Export Emergency” demands urgent, time-bound action: competitive, transparent energy tariffs; elimination of tax distortions; prompt refund mechanisms; and credible, predictable policies.
Export-led growth is Pakistan’s only sustainable path. Without it, stabilisation alone cannot deliver prosperity to a 240 million-strong population. The time for decisive action is now.
