Long-term reforms must increase the share of Pakistan’s textile export in the global market
Despite a positive response at the ‘Heimtextil’ exhibition in Germany, concerns persist for Pakistan’s textile sector due to political instability, rising bank markup, and high energy tariffs. Khurram Mukhtar, the Patron-in-Chief of the Pakistan Textile Exporters Association, highlighted the need for long-term reforms to enhance Pakistan’s textile export share globally. While Pakistani home textiles received acclaim at the exhibition, overall textile exports saw a five percent decline in the first six months of the current fiscal year.
Mukhtar emphasized the importance of assuring the international business community of Pakistan’s reliability as a supplier with a robust supply chain, raw materials, and skilled manpower. Long-term policies fostering a business-friendly environment are crucial to enhance Pakistan’s global reputation and competitiveness.
The textile industry faces challenges such as a 25 percent markup rate, expensive energy, and gas prices compared to regional counterparts.
To address these issues, Mukhtar called for immediate and long-term positive decisions from the new government post-general elections. Initiating long-term reforms, including reducing the markup rate to single digits and aligning energy prices with regional standards, is essential for the industry’s sustainability and competitiveness.
Rationalizing industry tariffs can further contribute to ending the practice of subsidizing other sectors at the expense of the industrial tariff.