Pakistan’s textile and apparel sector has proposed major reforms for the Federal Budget 2026–27, focusing on reducing production costs, improving industrial efficiency, easing exporters’ liquidity constraints, accelerating technological upgrading, and ensuring a more stable and investment-friendly business environment.
The proposals were presented during a meeting in Islamabad between Finance Minister Senator Muhammad Aurangzeb and representatives of leading textile chambers, associations, exporters, and industry stakeholders.
Industry representatives described the textile sector as a backbone of exports, employment, and foreign exchange earnings, and stressed the need for predictable policies to maintain global competitiveness amid rising regional and international pressure.
The delegation’s recommendations covered key areas including tax reforms, energy cost rationalisation, export facilitation, liquidity improvements, industrial modernization, investment incentives, and ease of doing business measures. They said these steps are essential to lower operating costs, improve efficiency, and strengthen export performance.
They also highlighted structural challenges such as delayed refunds, high energy costs, compliance burdens, and liquidity constraints, arguing that resolving these issues would improve cash flow and enable reinvestment in expansion and technology.
The sector further called for policies that support innovation, value-added production, SME growth, and diversification aligned with global demand trends, noting that stronger competitiveness would have wider economic benefits through exports, jobs, and industrial growth.
Finance Minister Aurangzeb appreciated the proposals and reaffirmed the government’s commitment to continuous engagement with the business community through the Finance Ministry’s Tax Policy Office, aimed at maintaining year-round consultation rather than only pre-budget discussions.
He also outlined ongoing efforts to enhance transparency and compliance through digital monitoring systems already introduced in sectors such as sugar, cement, beverages, and tobacco, stating that implementation has been applied across the board.
The minister invited the textile sector to collaborate on the gradual introduction of similar digital monitoring mechanisms, noting that initial discussions and pilot work had already begun with some industry stakeholders.
Industry representatives agreed to continue consultations with the government to develop a workable framework that reflects the sector’s complex supply chain structure and operational realities.
Aurangzeb assured participants that all proposals would be reviewed as part of the budget preparation process and reiterated the importance of the textile sector in driving exports and economic growth.
The meeting was attended by senior industry figures including Khurram Mukhtar, Javed Bilwani, Fawad Anwar, Rehman Naseem, Shahzad Asghar, Amer Abdullah, Kamran Arshad, Shahzad Saleem, Sohail Pasha, and Khawaja Masood, with a joint submission from major textile bodies including APTMA, PTEA, PHMA, PTC, PRGMEA, APBUMA, TMA, PDMEA, PBEA, and PAKSEA.
