New Delhi, Nov 5 (NationPress) After years of ineffective governance, misguided subsidies, and persistent structural issues, the textile industry in Pakistan, recognized as the country’s largest export sector, is reportedly on the verge of collapse, as per a recent media report.

This sector, once considered the cornerstone of Pakistan’s economy and responsible for nearly 60% of total exports, has experienced a drastic downturn in recent times, with exports declining sharply and imports increasing, according to Maldives Insight.

Data from the Pakistan Textile Council (PTC) indicates that textile exports fell by 3.83% year-on-year in the first quarter of FY26, amounting to $7.61 billion, compared to $7.91 billion in the same timeframe last year.

In September of this year, the nation faced its fifth contraction in six months, witnessing a 11.71% plunge in exports to $2.51 billion, while imports surged by 13.49% to reach $16.97 billion.

Despite ongoing warnings from industry leaders regarding the dire situation, short-term solutions such as rebates, bailouts, and energy subsidies from successive governments have only provided temporary relief, failing to foster long-term competitiveness.

PTC Chairman Fawad Anwar emphasized that without immediate corrective actions, Pakistan risks further closure of export-oriented businesses and a decline in foreign investment, leading to job losses, industrial shutdowns, and a severe drop in foreign exchange earnings at a time when the country can ill afford such setbacks.

Moreover, the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has highlighted a costly and inefficient logistics system that consumes 15.6% of GDP, nearly double that of advanced economies.

The report states, "Before a single container of garments departs from the port, it is already burdened with costs that render Pakistani exports uncompetitive."

With the collapse of its logistics, Pakistan has completely fallen off the World Bank’s Logistics Performance Index, while regional competitors like India, Vietnam, and Bangladesh are making significant progress.

These countries benefit from efficient ports, modern rail networks, and integrated supply chains, giving their exporters a competitive advantage in meeting deadlines, reducing costs, and expanding market reach.

The report also points to the reliance on obsolete technology, ongoing energy crises, and unpredictable policies characterized by frequent shifts in tax regimes, export facilitation initiatives, and import restrictions.

While policymakers discuss “revival plans” and “energy relief packages,” the prevailing data, industrial closures, and layoffs all suggest a “collapsing” industry.