Pakistan’s textile sector has warned that the country could miss a key window of opportunity in global trade unless the upcoming federal budget introduces strong measures to improve export competitiveness.
In a letter to Prime Minister Shehbaz Sharif, Pakistan Textile Council (PTC) Chairman Fawad Anwar said shifting global supply chains are pushing international buyers to diversify away from traditional sourcing markets, creating space for countries that can offer lower costs and reliable delivery.
He said Pakistan already has structural strengths, including a complete cotton-to-garment value chain, an established manufacturing base, and long-term relationships with global brands. However, he cautioned that high input costs and policy inefficiencies continue to weaken export competitiveness.
The council noted that despite improving global demand, Pakistan’s merchandise exports during the first 11 months of FY2025-26 were lower by around USD 1.66 billion compared to the same period last year.
Anwar said global buyers are actively searching for alternative sourcing destinations and Pakistan is being considered, but warned that the country risks losing orders if production costs remain uncompetitive.
The PTC emphasized that while macroeconomic stability has improved, sustained export growth is critical for job creation, investment inflows, and foreign exchange earnings.
For Budget FY2026-27, the council urged the government to restore a stable tax framework for exporters, reduce industrial electricity tariffs to regional levels, and clear outstanding tax refunds and pending dues on a priority basis.
It said Pakistan’s textile exporters continue to face some of the highest energy costs in the region, while delayed refunds are restricting working capital and expansion plans.
The textile and apparel sector remains the country’s largest export industry and a key source of employment and foreign exchange. The council warned that competing countries could capture emerging global orders if Pakistan fails to improve cost competitiveness, while reaffirming its willingness to support policy reforms aimed at strengthening exports.
