Pakistan’s textile and apparel industry has urged the government to introduce major tax, cash flow, and energy relief measures in the Federal Budget 2026–27 to improve export competitiveness and reduce production costs.
The demands were presented during a meeting between Federal Minister for Finance and Revenue Muhammad Aurangzeb and representatives of Pakistan’s textile sector, including exporters, trade associations, chambers, and industry stakeholders from across the country.
The industry delegation submitted a comprehensive set of budget proposals focused on taxation reforms, affordable energy pricing, export facilitation, industrial modernization, liquidity management, and ease of doing business.
Textile representatives stressed the need for a stable and internationally competitive policy environment to help the sector respond to changing global market conditions and increasing regional competition.
The proposals aim to reduce production costs, improve industrial efficiency, strengthen exporters’ liquidity, encourage technological upgrades, and create a more predictable investment climate.
Industry leaders argued that timely reforms and policy support would help boost value-added exports, attract domestic and foreign investment, strengthen Pakistan’s integration into global supply chains, and generate employment opportunities.
The delegation also highlighted long-standing operational challenges affecting productivity and export performance, including delayed tax refunds, high energy costs, compliance burdens, and limited facilitation for exporters.
Participants said improving refund mechanisms and rationalizing energy tariffs could significantly improve cash flow management and investor confidence while allowing businesses to invest more in expansion and workforce development.
During the meeting, Muhammad Aurangzeb reaffirmed the government’s commitment to maintaining continuous engagement with the business community through the Tax Policy Office of the Ministry of Finance.
He said the government aims to move beyond limited pre-budget consultations and establish a year-round consultative process for more transparent and responsive economic policymaking.
The finance minister also discussed the government’s ongoing efforts to improve transparency and compliance through digital monitoring systems across sectors including sugar, cement, beverages, and tobacco.
He invited the textile industry to cooperate in gradually implementing similar digital monitoring systems within the sector, noting that pilot projects had already started in some textile units in collaboration with the Federal Board of Revenue.
Representatives of the textile sector acknowledged the importance of transparency and documentation and agreed to continue discussions with the government to develop a practical implementation framework suited to the industry’s operational structure and supply chain complexities.
The finance minister assured participants that the textile sector’s recommendations would be carefully considered during the preparation of the Federal Budget 2026–27.
