Pakistan’s textile and clothing exporters have urged the government to introduce structural reforms and provide temporary financial relief to reverse the sector’s downturn and protect the country’s share in international markets.

Commerce Secretary Jawad Paul chaired a high-level meeting on Tuesday to review challenges facing the textile industry and discuss policy measures to restore export competitiveness.

A source told Dawn that the meeting formed issue-based subcommittees to examine the industry’s concerns and submit recommendations within 15 days.

At the meeting, exporters called for structural reforms to reduce production costs. They also proposed a drawback of local taxes and levies (DLTL) of 6 to 8 per cent on total export sales, conditional on achieving 10pc export growth.

Industry representatives said the proposed incentive could help sustain production, encourage higher exports and prevent Pakistan from losing further ground in international markets.

Exporters Raise Concerns Over Electricity Tariffs

Industrial electricity tariffs emerged as a major concern, particularly the burden of cross-subsidies that exporters say undermines their competitiveness.

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Industry representatives highlighted a Rs56 billion discrepancy in power tariff calculations. The Power Planning and Monitoring Company (PPMC) acknowledged Rs26bn of that amount, according to the report.

Officials decided to take up the matter with the Power Division at a meeting scheduled for Friday, October 16. The Commerce Ministry was also asked to submit recommendations to the prime minister for a final decision.

The meeting brought together officials from the ministries of finance, power, petroleum, and mines and minerals, along with representatives of the Federal Board of Revenue (FBR), the State Bank of Pakistan and the Punjab Industries Department.

Industry participants included Pakistan Textile Exporters Association Patron Khurram Mukhtar and Chairman Reehan Naseem; Pakistan Hosiery Manufacturers and Exporters Association Chairman Syed Zia Alamdar; Pakistan Textile Council Chairman Fawad Anwar; and All Pakistan Textile Mills Association representatives Rehman Naseem and Aamer Fayyaz.

Exporters Question Gas Tariff Methodology

Exporters also challenged the methodology used to calculate gas tariffs. They raised concerns over the treatment of unaccounted-for gas losses, arguing that the approach increased energy costs for industrial consumers.

The industry representatives also highlighted problems with the Export Finance Scheme (EFS). Their concerns included differences in financing rates, insufficient funding for the corporate sector and the failure of some commercial banks to apply the prescribed fixed financing rate of 4.5pc.

They called for corrective measures to ensure exporters could access financing at competitive rates. They argued that affordable credit was essential as manufacturers faced higher production costs and weaker demand in overseas markets.

Tax Refund Delays Add to Liquidity Pressures

Exporters also raised concerns over delays in tax refunds and other taxation issues involving the FBR.

They said the delays had tightened cash flows and limited manufacturers’ ability to finance export orders. Timely refunds, they argued, would help businesses manage working capital and maintain production.

Labour costs also featured in the discussions. Industry representatives told the meeting that the overall human resource cost had reached $270 per worker, adding to manufacturers’ financial pressures.

The subcommittees are expected to examine these concerns and recommend policy measures within 15 days. Their proposals could inform the government’s decisions on energy pricing, export financing, taxation and temporary support for the textile sector.