The Pakistan Bureau of Statistics (PBS) reported that the trade deficit widened by 29 per cent year-on-year, with major textile subsectors posting negative growth.

Textile exports for July-August stood at $3.20 billion, while in August alone the sector recorded shipments worth $1.52 billion, down from $1.67 billion in the same month last year.

The decline was led by knitwear, readymade garments, and bedwear, which saw exports drop sharply compared to August 2024.

Knitwear exports fell to $445.6 million, a decline of $67.5 million.

Readymade garments dropped by $72.1 million, while bedwear exports slid by nearly $30 million.

PBS data, however, showed a modest increase in cotton yarn exports, which helped offset some of the overall decline.

Analysts warn that the slowdown in the textile sector, the backbone of Pakistan’s exports, poses risks for external financing at a time when the country is grappling with higher import bills and mounting pressure on foreign exchange reserves.