Karachi: Textile exports from Pakistan are projected to fall short of the government's target, with expectations of remaining flat year-on-year at around $17 billion to $17.5 billion. This is in contrast to the initial government target of $19.4 billion, as global demand, particularly for intermediary products to regional suppliers, remains weak.

According to JS Global, the year-on-year growth in textile exports continues to decline, recording a decrease of 8.6% in December 2025. This has resulted in the first half of the fiscal year 2026 exports totaling $9.17 billion, reflecting a modest growth of 0.9% compared to the previous year. The intermediary segment, which includes cotton yarn and cloth, experienced a significant drop of 22% year-on-year, while key value-added segments such as knitwear, bedwear, and ready-made garments saw a decline of 5% in mid-December.

Despite the overall cautious outlook on the Pakistani textile sector, some integrated producers with a diverse product portfolio may find opportunities to benefit from shifts in suppliers' preferences. JS Global has highlighted Interloop Ltd as a preferred choice in the sector, suggesting it could potentially capitalize on these market dynamics.