Federal Minister for Commerce Jam Kamal Khan, accompanied by senior
officers of Ministry of Commerce, held a consultative session in hybrid mode with
Chairmen and representatives of Pakistan Hosiery Manufacturers and Exporters
Association (PHMA), Pakistan Readymade Garments Manufacturers and Exporters
Association (PRGMEA), Pakistan Textile Council (PTC), Pakistan Textile Exporters
Association (PTEA), All Pakistan Bedsheets and Upholstery Manufacturers Association
(APBUMA), and Towel Manufacturers Association (TMA) at the Ministry of Commerce
to thoroughly examine the key challenges facing the value-added apparel and textile
sector and devise strategic measures aimed at strengthening its global competitiveness
and substantially accelerating export growth.
The industry representatives delivered a detailed presentation outlining the key
challenges impeding export growth, notably the substantial burden of upfront taxes;
elevated energy tariffs combined with infrastructural limitations; ongoing liquidity
constraints caused by pending refunds; limitations under temporary importation
scheme, including reduced utilization periods; insufficient credit limits under Export
Finance Scheme that restrict access to necessary working capital; and repeated policy
shifts that significantly curtail the sector's export expansion potential.
Jam Kamal Khan reaffirmed the government’s support, recognizing value-added
apparel and textile sector a cornerstone of Pakistan’s exports and employment
generation. Pakistan is one of the few countries in the world with vertically integrated
supply chain which is significantly contributing in socio-economic development of the
country, and government will extend maximum support for its sustainability and growth,"
he added.
The Minister stated that a dedicated technical committee, as per the directions of
the Prime Minister, has already been constituted to review the issue of limited utilization
period under Export Facilitation Scheme and submit its recommendations for the
immediate resolution of these constraints.
Representatives of Micro, Small and Medium Enterprises (MSMEs) suggested
that the State Bank of Pakistan and EXIM Bank issue clear and explicit regulatory
guidelines to ensure the uniform acceptance of foreign master Letters of Credit (LCs) by
commercial banks as collateral for opening Back-to-Back LCs, thereby enhancing
exporters access to working capital and enabling them to further untap global business
opportunities. They further advocated for the inclusion of representatives from value-
added exporters on SMEDA Board and other pertinent forums, to promote greater
inclusivity and ensure active participation in policy formulation processes.
The Federal Minister reiterated the Ministry of Commerce’s unwavering
commitment to providing all necessary facilitation to exporters, including MSMEs. He
further assured that matters concerning back-to-back LCs would be actively pursued
with the relevant authorities to ensure smoother and more effective implementation.
Industry representatives stressed the urgent need to align Pakistan’s export
policy with those of regional competitors to enhance global competitiveness. They
affirmed that such alignment is essential for strengthening Pakistan’s position in
international markets, while highlighting the critical importance of long-term policy
stability and the swift implementation of measures to reinforce and safeguard the
sector’s competitive position.
The Minister expressed optimism about increasing national exports through
coordinated and inclusive engagement. He encouraged industry to focus on potential in
existing markets, explore new markets and diversify more to high-value finished
products. He further invited consolidated proposals from the apparel and textile industry,
stating that the Ministry would categorize them into immediate, budget-linked and
structural reforms, and submit to the Prime Minister for final consideration.
The meeting concluded with a shared commitment to continued structured
dialogue and coordinated action aimed at enhancing Pakistan’s export competitiveness
and supporting sustainable export growth.
