Pakistan’s textile industry has warned that the country could miss a major opportunity to attract global business unless the upcoming federal budget includes measures to improve export competitiveness.
In a letter to Prime Minister Shehbaz Sharif, Pakistan Textile Council (PTC) Chairman Fawad Anwar said international buyers are increasingly looking to diversify supply chains away from traditional sourcing hubs, creating an opening for countries that can offer competitive production costs and reliable exports.
He argued that Pakistan has key advantages, including a complete cotton-to-garment value chain, an established textile sector, and longstanding relationships with international brands. However, he said high production costs and policy distortions continue to undermine the country’s ability to compete.
According to the PTC, Pakistan’s merchandise exports during the first 11 months of FY2025-26 were $1.66 billion lower than the corresponding period of the previous year despite improving global demand.
“Global buyers are looking for alternatives and Pakistan is on their radar. The question is whether we will seize this opportunity or price ourselves out of the market,” Anwar said.
The council stressed that while economic stabilization has helped improve macroeconomic conditions, export growth remains essential for generating jobs, attracting investment, and earning foreign exchange.
PTC urged the government to make Budget FY2026-27 more supportive of exporters by restoring the Final Tax Regime (FTR), reducing industrial energy tariffs to levels comparable with regional competitors, and ensuring the timely release of outstanding refunds and withheld tax payments.
The council said exporters continue to face some of the highest energy costs in the region while substantial amounts remain tied up in pending refunds, limiting investment and expansion.
PTC noted that the textile and apparel sector remains Pakistan’s largest export industry and one of the country’s strongest sources of employment and foreign exchange earnings. It warned that competing countries could capture new export orders if Pakistan fails to improve its competitiveness.
The industry body said it remains ready to work with the government on reforms aimed at strengthening exports and supporting long-term economic growth.