The Pakistan Textile Council on Saturday welcomed the prime minister’s decision to recognize top exporters and introduce market based support measures, calling it a strong signal of the government’s commitment to export led growth at a time of limited fiscal space.
In a statement issued from Islamabad, the council said the acknowledgment of leading exporters reflects confidence in industries that continue to operate under challenging economic conditions, while reinforcing the importance of performance, compliance and global competitiveness.
PTC Chairman Fawad Anwar said the government’s approach of supporting exports without adding fiscal pressure is both timely and economically sound, particularly as Pakistan operates under an IMF program.
The council particularly welcomed the reduction in Export Refinance Facility rates, terming it a result of prudent macroeconomic coordination rather than fiscal spending. Anwar praised the role of State Bank Governor Jameel Ahmad and his team in implementing the framework.
He said a 1 percent reduction in the Cash Reserve Requirement released over Rs. 300 billion in liquidity into the banking system, enabling banks to absorb a 300 basis points cut in ERF rates while maintaining financial sector stability.
According to the PTC, the move has helped lower financing costs for exporters while preserving confidence in the banking system through close coordination between fiscal and monetary authorities.
The council also welcomed the government’s announcement to remove cross subsidies from industrial power tariffs, describing it as a long overdue correction of structural distortions that had disproportionately burdened export oriented sectors.
Commenting on concerns related to the India EU Free Trade Agreement, Anwar said fears surrounding its impact on Pakistan’s exports are being overstated. He said competitiveness rather than panic should guide policy, noting that the agreement will only take effect next year.
He added that Pakistan’s value added textile and apparel exporters remain well positioned due to strengths in quality, compliance, sustainability standards and long standing buyer relationships.
Looking ahead, the PTC called for a comprehensive long term reform agenda to sustain export growth. Key priorities outlined by the council include continuation of the GSP Plus regime through credible compliance, regionally competitive taxation, investment linked tax incentives, a stable and market aligned real effective exchange rate, duty free access to export inputs and removal of bureaucratic barriers.
The council reaffirmed its commitment to working closely with the government to translate macroeconomic stability into higher exports, job creation and improved foreign exchange earnings.