Pakistan garment exports have more than doubled in the past ten years from $1.96 billion in fiscal 2015–2016 to $4.17 billion in fiscal 2025–26. This has reflected in apparel overseas shipments from Pakistan recording a 10-year compound annual growth rate (CAGR) of 7.7%.
The main reason for this growth is mainly due to value addition, where focus has shifted from exporting raw or semi processed textiles like cotton or yarn to value addition products like clothing. This also indicates that the Pakistan apparel sector has been able to maintain its competitiveness, expanded production capabilities and has also been able to achieve higher worldwide penetration.
Industry experts believe the changing global sourcing landscape presents Pakistan with an opportunity to strengthen its position as a reliable manufacturing partner rather than competing solely on low production costs, as global buyers increasingly prioritise supply-chain resilience, product quality, traceability, environmental compliance and timely delivery alongside competitive pricing.
This is reinforced by broader industry trends—McKinsey’s State of Fashion 2026 report notes that fashion brands are redesigning sourcing strategies to strengthen operational resilience amid geopolitical uncertainty, evolving trade policies and changing regulatory requirements, while placing greater emphasis on sustainability, supplier transparency and supply-chain diversification.
Despite the strong momentum, industry analysts note that Pakistan’s garment sector could achieve even higher growth. The sector has the capacity to grow at a significantly higher CAGR, which is not being fully realised due to uncompetitive energy tariffs and wage policies compared with competitor countries. Addressing these structural cost disadvantages is seen as key to unlocking the next phase of export growth.
Image courtesy: Garment Resources
