Pakistan’s textile industry has called on the government to introduce major relief measures in the upcoming federal budget, warning that exporters are struggling with high costs, liquidity pressures, and an increasingly complex tax environment.
Chairman of the Pakistan Textile Council, Fawad Anwar, urged policymakers to establish a 10-year fixed-rate financing facility for industrial investment, restore the Final Tax Regime (FTR) for exporters, and abolish advance taxes on the export sector.
According to Anwar, Pakistan’s export-oriented industries continue to face challenges including expensive financing, elevated energy tariffs, cash flow constraints, and regulatory uncertainty, all of which are discouraging new investment and limiting export growth.
He said the Federal Budget 2026-27 presents an opportunity to shift the economy toward investment-led and export-driven growth by creating a more competitive business environment.
The PTC chairman emphasized that long-term industrial projects require predictable financing costs. He argued that a dedicated fixed-rate financing facility extending up to 10 years would encourage factory expansions, technology upgrades, and the establishment of new export-oriented manufacturing units.
He also called for the restoration of the Final Tax Regime, saying the current tax structure creates administrative burdens and affects exporters’ liquidity through multiple advance tax deductions. According to the council, simplifying taxation would allow businesses to focus on increasing production and expanding exports.
The textile sector believes Pakistan is well-positioned to capitalize on shifts in global supply chains but stressed that the country must lower the cost of doing business and provide policy stability to attract investment.
Anwar noted that exports remain one of Pakistan’s most sustainable sources of foreign exchange earnings and employment generation. He expressed hope that the upcoming budget would introduce practical reforms to strengthen exports, attract investment, and enhance Pakistan’s competitiveness as a manufacturing hub.
