Pakistan textile exports lose momentum as industry seeks PM Shehbaz’s urgent intervention

ISLAMABAD, July 16: Pakistan Textile Council (PTC) has urged Prime Minister Shehbaz Sharif to take immediate steps to protect the country’s textile sector, warning that rising production costs and delays in government support are hurting exports, ARY News reported.

In a letter addressed to the prime minister, the PTC called for urgent policy measures to improve the competitiveness of Pakistan’s textile industry and prevent a further slowdown in exports.

According to the council, Pakistan’s textile exports stood at $17.93 billion during fiscal year 2025-26, reflecting a marginal annual growth of just 0.26 percent.

The council said the situation worsened in June 2026, when textile exports declined 16.71 percent year-on-year and 23 percent month-on-month, indicating increasing pressure on the country’s largest export sector.

PTC said exporters are struggling with rising production costs, expensive electricity and growing financial burdens, making it difficult for Pakistani products to compete in international markets.

The council also highlighted delays in the implementation of the announced Export Refinance Scheme, saying exporters are being forced to obtain costly commercial financing, increasing the overall cost of doing business.

The letter further pointed out that Pakistan’s cotton production has dropped to around 5.5 million bales, marking an almost 70 percent decline compared with the 2011-12 level, creating additional challenges for the textile industry.

To revive the sector, the Pakistan Textile Council urged the government to reduce the employer’s EOBI contribution rate to two percent, review industrial electricity tariffs and immediately implement the Export Refinance Scheme.

PTC Chairman Fawad Anwar warned that if timely reforms are not introduced, the slowdown in textile exports could deepen further, affecting Pakistan’s export earnings and overall economic growth.