Pakistan’s new five-year textile policy sets ambitious export targets, but industry leaders warn it may fall short without genuine implementation and IMF flexibility.
The Ministry of Commerce has finalised the draft Textile & Apparel Policy 2025–30 and plans to send it to the Economic Coordination Committee after one last round of inter-ministerial consultations. The policy aims to lift textile and apparel exports from USD 19.37 billion in FY26 to USD 29.38 billion by FY30, aligning with the Uraan Pakistan framework and NEDB’s long-term export vision.
The draft includes sweeping interventions: redesigning the Export Finance Scheme, expanding low-markup financing for value-added sectors and MSMEs, scaling credit-risk insurance for exporters, relaunching renewable-energy financing, enabling back-to-back LCs, and incentivising overseas warehousing for e-commerce exporters. It also proposes major energy reforms, including regionally competitive tariffs, uninterrupted power supply for exporters, CTBCM operationalisation, reduced T&D losses, and rationalised net-metering rules.
Industry stakeholders, however, remain unconvinced. They argue the policy will not deliver unless the government incorporates sector recommendations and guarantees implementation. Many warn that IMF programme constraints mean “understandings with industry will not be honoured,” risking the policy becoming “a document, not a plan.” High energy costs, inconsistent power supply, and lack of coordinated industrial governance further threaten its viability.
The next steps will determine whether the policy becomes transformative or symbolic. If the ECC approves a version with enforceable reforms—especially on energy, financing, and export facilitation—it could unlock investment in high-value, high-tech textiles and strengthen Pakistan’s competitiveness. Without real execution and cross-ministerial alignment, Pakistan risks missing another global sourcing opportunity despite strong export potential.
