Pakistan’s textile and apparel exports are under acute stress, with record-high manufacturing costs eroding competitiveness in global markets, according to the Pakistan Hosiery Manufacturers Association (PHMA).
PHMA Chairman (South) warned that exorbitant electricity and gas tariffs, liquidity shortages, high interest rates, adverse international tariffs, and weak global demand have severely hit value-added exports—especially hosiery and apparel, the backbone of Pakistan’s export economy.
Key Export Numbers (Official Data)
Based on figures from the Pakistan Bureau of Statistics (PBS):
- December 2025 exports:
USD 2.317 bn, down 20.41% YoY (USD 2.911 bn in Dec 2024) - Month-on-month (Dec):
Further 4.26% decline - July–December FY2025:
Exports fell 8.70% to USD 15.184 bn (from USD 16.631 bn) - Trend:
Fifth consecutive month of negative export growth
Industry’s Core Concerns
- Energy costs: Pakistan now faces the highest regional electricity and gas tariffs for exporters.
- Liquidity crunch:
- Shift from Final Tax Regime (FTR) to Normal Tax Regime (NTR) has trapped refunds.
- The Export Facilitation Scheme (EFS) has failed to ease cash flow.
- Interest rates:
The highest-ever policy discount rate relative to regional peers is discouraging exports. - External pressure:
New U.S. tariff measures and other international trade barriers are compounding the challenge.
Call for Emergency Action
Speaking at the Planning Commission’s Roundtable on Textiles & Apparel under Uraan Pakistan, Sheikh urged Prime Minister and Planning Minister Ahsan Iqbal to:
- Declare an export emergency
- Approve the Apparel & Textile Policy 2025–2030 immediately, in consultation with industry
- Restore proven support tools, including:
- Regionally Competitive Energy Tariff (RCET)
- Duty Drawback on Local Taxes and Levies (DLTL)
- Freeze or reduce energy tariffs for export-oriented industries
- Cut interest rates to single digits to revive competitiveness
Why This Matters Now
- Pakistan risks losing export orders and global market share just ahead of major international textile exhibitions—critical venues for securing future business.
- Even if orders are booked, prohibitive production costs may prevent fulfillment, threatening credibility with global buyers.
- The sector employs millions and anchors foreign exchange earnings—continued decline raises macroeconomic and employment risks.
Bottom Line
Without urgent, coordinated intervention, Pakistan’s textile and apparel sector faces a prolonged contraction. Industry leaders are calling for war-footing policy action to restore cost competitiveness, unlock liquidity, protect jobs, and stabilize exports before irreversible damage is done.
