Leaders of Pakistan’s value-added apparel and textile industry have outlined a series of critical obstacles, including burdensome upfront taxes, prohibitive energy tariffs, and persistent policy instability, that they argue are severely impeding export growth and curtailing the sector”s potential on the global stage.
According to a report by Press Information Department today, the grave concerns were presented during a high-level consultative session with Federal Minister for Commerce Jam Kamal Khan, where industry representatives sought strategic interventions to bolster global competitiveness and substantially accelerate export expansion.
A detailed presentation delivered by heads of several key export associations highlighted significant liquidity constraints stemming from pending refunds, limitations under the temporary importation scheme, and inadequate credit limits through the Export Finance Scheme, which restricts access to essential working capital.
Representatives from Micro, Small and Medium Enterprises (MSMEs) specifically called for the State Bank and EXIM Bank to issue explicit regulatory guidelines for commercial banks to uniformly accept foreign master Letters of Credit (LCs) as collateral. They also advocated for representation on the SMEDA Board and other pertinent forums to ensure their participation in policy formulation.
In response, Jam Kamal Khan recognised the value-added sector as a cornerstone of the nation’s exports and employment, highlighting Pakistan’s advantage of a vertically integrated supply chain. “The government will extend maximum support for its sustainability and growth,” the minister affirmed.
Mr Khan announced that, on the Prime Minister”s directive, a dedicated technical committee has already been formed to review and recommend immediate solutions for the limited utilisation period under the Export Facilitation Scheme. He also pledged to actively pursue the matter of back-to-back LCs with the relevant authorities.
Industry leaders stressed the urgent necessity of aligning Pakistan’s export policy with those of regional competitors to enhance its global standing. They emphasised that long-term policy stability and swift implementation of corrective measures are critical for reinforcing the sector”s competitive position.
The minister expressed optimism about boosting national exports through coordinated engagement, encouraging the industry to focus on potential in existing markets, explore new territories, and diversify into high-value finished products.
He invited the apparel and textile associations to submit consolidated proposals, which the ministry will categorise into immediate, budget-linked, and structural reforms for the Prime Minister’s final consideration. The dialogue concluded with a shared commitment to continued structured collaboration aimed at enhancing Pakistan’s export performance.