FAISALABAD: The federal government has constituted separate committees to address key issues facing Pakistan's textile export industry and directed them to submit recommendations within 15 days, following a high-level meeting on declining textile exports and domestic trade. The meeting, held on Tuesday, October 13, was chaired by the Secretary of Commerce and Rana Ihsaan Afzal Khan, Coordinator to the Prime Minister.
Officials from the ministries of finance, power, petroleum and maritime affairs, Federal Board of Revenue (FBR), State Bank of Pakistan (SBP) and Punjab Industries Department attended alongside textile industry representatives and other stakeholders. According to the Pakistan Textile Exporters Association (PTEA), the government took serious note of its concerns after it warned on October 7 of declining textile exports and domestic commerce and called for structural reforms to restore competitiveness.
PTEA Patron-in-Chief Khurram Mukhtar and Chairman Reehan Naseem represented the association. PTEA sought a temporary Duty and Tax Remission for Exports (DLTL) incentive of 6-8 per cent on total export sales, subject to 10 per cent export growth, to help exporters retain international market share.
It also called for structural reforms to address longstanding problems affecting industrial production, financing and competitiveness. Power tariffs were a key concern.
PTEA highlighted an estimated Rs56 billion anomaly involving cross-subsidies imposed on B3 and B4 electricity consumers. The Power Planning and Monitoring Company (PPMC) acknowledged Rs26 billion of the identified amount, according to the association.
The next meeting with power sector authorities is scheduled for October 16, with the Ministry of Commerce directing them to reach a final conclusion for a decision by the prime minister. PTEA also challenged the methodology for calculating the levy on gas tariffs and raised concerns over Unaccounted-for Gas (UFG) charges, which exporters say increase industrial energy costs and undermine competitiveness.
On logistics, the association appreciated the maritime affairs minister and his team for reducing domestic costs and improving port efficiency. However, it highlighted the lack of regular cargo trains from Faisalabad, Lahore and Multan, high sea freight charges, lengthy transit times and operational problems at transshipment hubs.
The association also raised concerns over pricing anomalies under the Export Finance Scheme (EFS), inadequate allocations for the corporate sector and some banks' failure to implement the announced fixed interest rate of 4.5 per cent. Taxation-related discussions with the FBR covered delayed sales and income tax refunds and duty drawbacks, which the industry says constrain exporters' liquidity and their ability to finance production and fulfil orders.
The association described the meeting as productive, saying the issues were examined in detail and other stakeholders supported its position. At PTEA's request, separate committees were formed to examine the issues and submit recommendations within 15 days.
The industry hopes the recommendations will lead to practical measures to restore exporter confidence, protect Pakistan's share in international markets and reverse the decline in textile trade.