The federal government has formed separate committees to address problems facing Pakistan’s textile export industry and directed them to submit recommendations within 15 days.
The decision was taken at a high-level meeting on October 13, chaired by Commerce Secretary and Prime Minister’s Coordinator Rana Ihsaan Afzal Khan. Officials from the finance, power, petroleum and maritime affairs ministries, the Federal Board of Revenue (FBR), the State Bank of Pakistan (SBP) and the Punjab Industries Department attended, along with textile industry representatives.
According to the Pakistan Textile Exporters Association (PTEA), the government took up its concerns after the association warned on October 7 that declining textile exports and domestic trade required structural reforms.
PTEA Patron-in-Chief Khurram Mukhtar and Chairman Reehan Naseem represented the association at the meeting.
The association proposed a temporary Duty and Tax Remission for Exports (DLTL) incentive of 6 to 8 percent of total export sales, conditional on export growth of 10 percent. It said the incentive could help Pakistani exporters maintain their share of international markets.
Electricity costs were among the major issues discussed. PTEA identified an estimated Rs. 56 billion discrepancy involving cross-subsidies charged to B3 and B4 industrial electricity consumers. The Power Planning and Monitoring Company acknowledged Rs. 26 billion of the amount, according to the association.
A follow-up meeting with power sector authorities is scheduled for October 16. The Ministry of Commerce has asked the relevant authorities to reach a final conclusion for consideration by the prime minister.
The association also questioned the methodology used to calculate gas levies and raised concerns about Unaccounted-for Gas (UFG) charges, which it says add to industrial costs.
On logistics, PTEA welcomed efforts by the maritime affairs minister and his team to reduce domestic costs and improve port efficiency. However, it highlighted the absence of regular cargo train services from Faisalabad, Lahore and Multan, high sea freight charges, long transit times and operational issues at transshipment hubs.
The association also raised concerns about pricing discrepancies under the Export Finance Scheme (EFS), limited financing allocations for the corporate sector and some banks’ failure to implement the announced fixed interest rate of 4.5 percent.
Discussions with the FBR focused on delays in sales tax and income tax refunds, as well as duty drawbacks. PTEA said these delays restrict exporters’ cash flow and make it harder for them to finance production and fulfil orders.
The association described the meeting as productive, saying its concerns were discussed in detail with relevant stakeholders. At its request, separate committees were formed to examine the issues and submit recommendations within 15 days.
The industry expects the process to produce practical measures to improve exporters’ competitiveness, restore business confidence and help reverse the decline in textile trade.
