The Pakistan Hosiery Manufacturers & Exporters Association (PHMA) has raised serious concerns about the government’s selective inclusion of only the rice sector in key export support mechanisms, urging authorities to extend similar assistance to the value-added textile and apparel industry, which contributes far more to Pakistan’s export earnings.
PHMA leadership highlighted that while the rice sector, with exports of roughly $3 billion, has been granted access to government export facilitation schemes such as the Export Development Fund (EDF) and the Duty Drawback of Local Taxes and Levies (DLTL), value-added textiles continue to lack similar support.
In contrast, the value-added textile sector contributes nearly $18 billion to Pakistan’s exports and plays a significant role in employment generation and industrial growth across multiple regions of the country. Despite this, exporters from the apparel and textile segment say they have been denied equitable access to tools that help reduce production costs and improve competitiveness in global markets.
Ahmed Afzal Awan, Senior Vice Chairman of PHMA North Zone, emphasized that achieving national export targets will be difficult without fair and practical support measures for one of Pakistan’s largest export sectors.
PHMA has specifically called for:
- Inclusion of value-added textiles in the Export Development Fund
- Restoration of equitable access to the DLTL mechanism
- Policy reforms aimed at reducing production costs
- A level playing field with competitor countries in the region
Awan also urged the Prime Minister to declare an export emergency and facilitate a high-level dialogue involving all representative export sector organizations to address these pressing concerns.
Competitive Pressures and Policy Signals
The association’s demand comes amid broader concerns in the textile sector over policy changes that have affected export facilitation schemes. Industry representatives from other bodies, including the Pakistan Textile Council, have also sounded alarms over amendments to the Export Facilitation Scheme (EFS) that have excluded critical raw materials from zero-rated status, creating uncertainty and operational hurdles for exporters.
Recent analyses have shown the textile sector remains Pakistan’s dominant export contributor, accounting for around 63 % of overall export earnings, yet persistent policy and cost challenges undermine its full potential.
By advocating inclusive facilitation, PHMA is aligning with broader industry calls for reforms that strengthen Pakistan’s export competitiveness and help sustain long-term economic growth.
Broader Impact and Industry Outlook
The value-added textile sector not only provides significant foreign exchange earnings but also supports thousands of jobs and a vast supply chain of small and medium enterprises. Ensuring access to cost-reducing export support mechanisms could enhance productivity, encourage reinvestment, and enable exporters to compete more effectively against regional peers.
PHMA’s appeal underscores the importance of policy coherence, collaboration between industry and government, and strategic support that reflects the sector’s contribution and challenges.
