The textile sector has warned that Pakistan may miss major global export opportunities if policy changes are not made in the upcoming budget. The industry says urgent reforms are needed to improve competitiveness.
The warning was issued by the Pakistan Textile Council (PTC) in a letter to Prime Minister Shehbaz Sharif. The council highlighted rising risks for exporters in Pakistan.
PTC Chairman Fawad Anwar said global buyers are shifting supply chains. They are moving away from traditional sourcing markets. This shift creates new opportunities for competitive countries.
He said Pakistan has strong industrial strengths. These include a full cotton-to-garment value chain and an established textile base. The country also maintains long-term trade links with international brands.
However, the council warned that high production costs are weakening competitiveness. It said policy distortions are also reducing export potential in Pakistan.
According to the PTC, merchandise exports dropped by $1.66 billion during the first 11 months of FY2025-26. This decline was recorded despite improving global demand conditions.
Fawad Anwar said international buyers are actively searching for new suppliers. He added that Pakistan is currently on their radar for potential sourcing.
He warned that failure to act could result in lost opportunities. Competing countries may secure new export orders if Pakistan does not improve conditions.
The council stressed that export growth is essential for Pakistan’s economy. It supports jobs, foreign exchange earnings, and long-term industrial stability.
The PTC urged the government to include key reforms in Budget FY2026-27. It recommended restoring the Final Tax Regime (FTR) for exporters.
It also called for lower industrial electricity tariffs. The council said energy costs in Pakistan are higher than regional competitors.
In addition, it demanded faster refund payments and clearance of pending taxes. Delays, it said, are blocking investment and slowing industrial expansion.
The textile sector also highlighted liquidity pressures. Large sums remain stuck in unpaid refunds and tax adjustments across Pakistan.
The textile and apparel industry remains the largest export sector in Pakistan. It is also one of the biggest sources of employment and foreign exchange earnings.
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The council said it is ready to work with the government. It aims to support reforms that strengthen exports and improve long-term economic growth in Pakistan.
