Pakistan textile sector hit by cotton and energy crisis

Pakistan’s textile sector is facing a severe dual crisis driven by cotton shortages and ongoing energy disruptions, impacting production and export performance.

Flood damage reduced cotton output to around 5 million bales, far below the industry’s requirement of 14 million bales, forcing increased reliance on costly imports amid declining foreign exchange reserves.

At the same time, persistent power outages and fuel shortages have forced many mills to operate at 50% capacity or lower, causing significant financial losses and supply chain disruptions.

With textiles contributing over 60% of national exports and employing a large share of the workforce, the crisis highlights structural vulnerabilities and the urgent need for policy support, energy stability, and raw material security.