Pakistan’s textile industry has called on the State Bank of Pakistan (SBP) to increase export refinance support, warning that exporters are facing mounting financial pressure due to rising operational costs.

In a letter sent to the SBP governor, the All Pakistan Textile Mills Association (APTMA) highlighted that the sector is currently struggling with tighter working capital conditions. It attributed the stress to higher energy prices, disruptions in supply chains, and ongoing global economic uncertainty.

The association emphasized the critical importance of textiles to the national economy, noting that the sector accounts for around 60% of Pakistan’s total exports, contributes approximately 8.5% to GDP, and provides nearly 40% of employment in the manufacturing segment.

APTMA further stated that while textiles remain a key source of foreign exchange earnings, exporters are now under pressure from both domestic economic challenges and external geopolitical tensions, particularly developments in the Middle East, which have added to market uncertainty.

The industry body stressed that timely access to adequate financing is essential for exporters to manage working capital needs and fulfill international orders on schedule. It urged the central bank to expand and strengthen export refinance facilities to help sustain export momentum.

It added that improved financing support would not only help stabilize the textile sector but also enhance Pakistan’s competitiveness in global markets, boost export volumes, and support broader macroeconomic stability.