Business

Textile exporters reject ‘Golden Spoon’ remarks

LAHORE: Value-added textile exporters have rejected Prime Minister Shehbaz Sharif’s remarks about export-oriented industries, saying Pakistan’s textile sector continues to generate substantial foreign exchange despite rising production costs and intense competition in global markets.

Textile exports increased 5.55% to $3.379 billion during July-August 2026, while readymade garment exports rose 13.59% to $827 million. For the full fiscal year 2025-26, textile exports reached $17.932 billion, showing only 0.26% annual growth, while readymade garment exports climbed 3.87% to $4.288 billion.

Exporters said the government should distinguish between policy support and the actual cost of running export-oriented factories. They stressed that the industry does not seek charity or protection but needs competitive electricity and gas tariffs, affordable financing, timely refunds, predictable taxation and a stable business environment.

They noted that Pakistani exporters compete with major sourcing countries including Bangladesh, India, Vietnam and China. Higher energy, financing, taxation and compliance costs directly raise production expenses and make it harder for local companies to secure international orders.

Former PHMA chairman Abdul Hameed said export growth depends heavily on the cost of doing business. He said exporters face expensive energy, high financing costs, tax pressures and liquidity shortages while the government expects them to increase foreign-exchange earnings.

PHMA zonal vice chairman Izhar ul Haq called for a uniform and predictable export policy. He said selective incentives could create market distortions, while equal rules for all genuine exporters would encourage investment and expansion.

PRGMEA central chairman Sohail Afzal Sheikh said apparel manufacturers must also meet growing international demands for sustainability, traceability, digitalisation and higher quality standards. He called for lower utility costs, faster refunds, easier access to finance, simpler regulations and improved trade facilitation.

Former PRGMEA chairman Ijaz Khokhar also stressed the importance of consistent long-term policies and an easier business environment to support investment and expansion.

Exporters said delayed refunds continue to tie up working capital needed for raw materials, salaries, machinery and business expansion. They urged the government to clear outstanding refunds and remove the industrial power cross-subsidy.

The exporters said Pakistan should measure the sector through export growth, productivity, investment, employment, market expansion and foreign-exchange earnings rather than generalised criticism.

They urged the government to introduce transparent and uniform export policies, improve the ease of doing business and provide a stable long-term framework aimed at expanding Pakistan’s overall exports.

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