When the Floods Washed Away Cotton: Pakistan’s Textile Industry in Crisis

INFORMATIVE

9/5/20252 min read

In the wake of unprecedented monsoon floods across Pakistan in 2025, the country’s textile industry—tied intrinsically to cotton production—is under immense strain. This article explores the scale of agricultural devastation, its ripple effects on the textile sector, and the broader economic and human toll.

Flood Devastation and Agricultural Losses

In Punjab alone, over 2,000 villages were submerged, displacing more than 2 million people. Over 760,000 people and 516,000 animals were evacuated, with at least 33 confirmed deaths.
Across eastern Punjab, some estimates place the crisis as the worst flooding in the region's history, affecting around 2 million people and triggering extensive rescue and relief efforts.
Nationwide, more than 1.8 million people have been displaced, and over 3.8 million affected overall, making this the worst flooding since 2022.

Crop Losses and Cotton Supply Risks

Preliminary assessments show that approximately 35% of cotton, 60% of rice, and 30% of sugarcane in Punjab have been lost due to the floods.
In Sindh’s cotton-growing regions, some reports indicate as much as an 88% reduction in expected cotton production—equating to 3.1 million bales lost—resulting in around $485 million in direct losses.
Combined agricultural losses in key crops (rice, cotton, sugarcane) are estimated at $1.3 billion.

Cotton Arrivals: A Silver Lining Amid Crisis

By August 31, 2025, cotton arrivals reached 1.336 million bales, marking a 9% rise over the previous year’s total of 1.226 million bales.
Regionally, Punjab’s arrivals increased by 3% (from 0.453 to 0.466 million bales), while Sindh’s arrivals surged 13% (from 0.773 to 0.870 million bales)
Despite this relative improvement, experts caution that the positive numbers may be misleading due to continued flooding in key crop areas and potential future losses.

Impact on the Textile Industry

Cotton is the principal raw material for Pakistan’s textile sector, which constitutes over 50% of its exports.
With supply under strain, experts warn of supply chain disruptions, delayed shipments, and inflationary pressures on fabric and apparel prices.
The textile industry already grapples with a 19% tariff on its exports to the U.S., compounding the impact of crop losses.

Economic Outlook & Recoveries

Textile exports had shown resilience earlier in 2025, increasing by 7.22% to $17.88 billion in FY2024–25 despite challenges.
In the first eight months of FY2024–25 (July–February), textile exports surged 9.31% to $12.18 billion, with growth driven by value-added products like knitwear (+17.1%) and bedwear (+13.1%).
Yet, with cotton supplies threatened, sustaining this momentum is at risk.

Conclusion: A Call for Resilience and Support

Pakistan’s textile industry—a cornerstone of its economy—is at a crossroads. Flood-induced setbacks have disrupted its vital cotton supply chain, threatening production and export revenues. While favorable arrivals data offers temporary relief, the underlying vulnerability remains acute.

The path forward lies in:

Swift agricultural recovery efforts and contingency policies
Support for affected farmers and ginners
Long-term investments in climate resilience and flood mitigation

Global awareness and solidarity can bolster Pakistan’s journey to rebuild and sustain its textile industry amid mounting environmental challenges.