The textile sector has urged the government to provide tax relief and introduce cheaper long-term financing options in the upcoming Budget 2026–27 to support industrial growth and improve export competitiveness.

Industry stakeholders argue that high input costs, expensive borrowing, and rising operational pressures are squeezing margins and slowing expansion. They believe targeted fiscal relief and easier access to affordable long-term credit are essential to sustain production and maintain Pakistan’s export momentum.

The sector has also stressed that improved financing structures could help upgrade machinery, expand capacity, and strengthen value-added textile exports in global markets.

The PTC chairman emphasized that industrial projects require long term planning and predictable borrowing costs. He said a dedicated financing facility with a fixed markup rate for up to 10 years would encourage industrial expansion, technology upgrades, and the establishment of new export oriented manufacturing units.

He added that exporters should not face multiple advance tax deductions that negatively impact cash flows and increase the cost of doing business. According to him, the restoration of the Final Tax Regime would simplify the taxation system, improve documentation, and allow exporters to focus on increasing production and exports.

PTC noted that Pakistan has significant untapped export potential and is well positioned to benefit from the ongoing reconfiguration of global supply chains. However, the council said this opportunity can only be realized through policies that lower the cost of doing business and provide a stable environment for investment.