The Pakistan Textile Council (PTC) has urged Shehbaz Sharif to declare an “Export Emergency,” warning that Pakistan’s textile exporters are nearing collapse due to falling competitiveness, high costs, tax distortions, and uncompetitive energy pricing.
In a letter to the Prime Minister, PTC Chairman Fawad Anwar said Pakistan’s external trade position is deteriorating rapidly. Exports fell more than 14% year-on-year in November 2025, marking the fourth straight monthly decline. During July–November FY26, exports dropped to $12.8 billion from $13.7 billion a year earlier, while imports rose above $28 billion, pushing the trade deficit close to $15.5 billion in just five months.
To stabilise exports, PTC proposed urgent measures, including restoration of the 1% final tax regime on exports, withdrawal of advance tax, and tax relief for exporters achieving double-digit growth. It also called for abolishing the super tax on major export sectors, fixing gas and electricity tariffs at regionally competitive rates, restoring excluded items under the Export Facilitation Scheme, and rationalising gas pricing in the fertiliser sector.
PTC further urged action to curb undocumented cotton trade—either through strict enforcement or GST exemption on cotton—along with removal of SESSI and EOBI obligations for exporters due to high compliance costs. It also asked that banks be directed, via the State Bank of Pakistan, to allocate at least 50% of lending to the private sector.
“Exports must lead the recovery,” the PTC chairman stressed, warning that delays will deepen factory shutdowns, job losses, and erosion of market share. An export emergency, he said, could quickly stabilise the sector and support sustainable economic growth.
