Textile Exporters Urge Government for Support Amid Declining Competitiveness

ISLAMABAD: Textile and clothing exporters are calling on the government to implement structural reforms and provide temporary financial assistance to mitigate the sector’s downturn and safeguard Pakistan’s position in international markets amidst increasing global competition.

The appeal was made during a high-level meeting chaired by Commerce Secretary Jawad Paul on Tuesday, where participants discussed the challenges confronting the textile industry and potential policy measures to enhance export competitiveness. A source revealed that issue-based subcommittees have been established to address the industry’s concerns and are expected to submit their recommendations within 15 days.

During the meeting, exporters emphasized the need for structural reforms to tackle the rising cost of production. They also requested immediate relief in the form of a six to eight percent drawback of local taxes and levies (DLTL) on total export sales, contingent upon achieving a 10% growth in exports. This proposed incentive is seen as crucial for sustaining production levels and encouraging higher export volumes.

Looking ahead, the formation of subcommittees indicates a proactive approach to resolving the textile sector’s issues. Stakeholders are keenly awaiting the recommendations, which could lead to significant policy changes aimed at revitalizing the industry and enhancing its global competitiveness.