This edition of ADS's Weekly Industrial Watch tracks short-term movements in energy, exports, and industrial policy for Aug 03-09, 2026. Pakistan's textile sector received a competitiveness boost as the government sanctioned over $35 million for textile and other exporters, alongside the release of Rs10 billion in long-pending export refunds. Cotton output improved, with Sindh leading a nationwide increase in production - a positive signal for the textile value chain - even as exporters raised concerns over growing pressures on the sector and July exports recorded 10% year-on-year growth. A major U.S. textile supplier highlighted its expanding business engagement with Pakistan. In sports goods, Pakistan and China agreed to expand sports footwear manufacturing, including plans for 16 production lines in collaboration with a Pakistani FIFA World Cup football manufacturer. Cement dispatches rose 6.02% year-on-year to 4.476 million tonnes in July despite a sharp decline in exports, Pakistan's steel sector saw a new tax framework take effect (a Rs5/unit sales tax on electricity for notified steel manufacturers), and fertilizer manufacturers called for dedicated gas supplies amid weaker offtake.
Key Points
- 1$35 million sanctioned for textile and other exporters, plus Rs10 billion released in long-pending export refunds
- 2Cotton production rose nationwide, led by Sindh, boosting the textile value chain outlook
- 3July exports grew 10% year-on-year even as exporters flagged rising pressures on the sector
- 4Pakistan and China agreed to build 16 new sports footwear production lines
- 5Cement dispatches rose 6.02% YoY to 4.476 million tonnes despite a sharp export decline
- 6A new Rs5/unit electricity sales tax took effect for notified steel manufacturers, while fertilizer makers called for dedicated gas supplies