Textile exporters have urged the government to reverse recent policies that they say are threatening Pakistan’s $9 billion value-added textile export industry. In a joint letter to Prime Minister Shehbaz Sharif, the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) and the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) called for immediate action to resolve tariff barriers and policy restrictions disrupting supply chains.
The exporters highlighted four critical issues needing urgent attention in the upcoming federal budget. Most importantly, they demanded the restoration of the original Export Facilitation Scheme (EFS), claiming recent changes have hurt small and medium-sized enterprises (SMEs), which are vital to the value-added textile sector.
Additionally, the associations stressed the need to reinstate the exporters’ final tax regime. They believe this would reduce compliance burdens, lower administrative costs, and support financial stability for exporters, especially during difficult economic conditions. This step, they said, would also simplify the tax process and make the business environment more favorable for SMEs.
To ease liquidity concerns, the exporters urged the Federal Board of Revenue (FBR) to ensure automated, fast-track processing of sales tax and customs rebates. They also called for timely reimbursement of Drawback of Local Taxes and Levies (DLTL) and Duty Drawback of Taxes (DDT), which are key for maintaining export competitiveness in global markets.
The letter also pushed for a zero-for-zero apparel tariff agreement with the United States to lower Pakistan’s high 29% apparel tariff. Such an agreement, they argued, could unlock new markets and help Pakistan boost its exports in the face of growing international competition.
Exporters warned that without swift government intervention, Pakistan risks widespread factory closures, job losses, and a sharp decline in foreign exchange earnings. They urged the government to act now to stabilize the country’s largest export sector and help achieve the national goal of $100 billion in exports.