PHMA urges PM to declare ‘export emergency’ immediately

KARACHI: Export-led growth cannot be achieved through policies and statements alone and requires concrete facilitation measures, particularly reduction in manufacturing costs and provision of a level-playing field comparable to regional competitors, the Pakistan Hosiery Manufacturers & Exporters Association (PHMA) said on Thursday.

PHMA Central Chairman Muhammad Babar Khan, along with Chairman North Abdul Hameed and Chairman South Faisal Arshad Sheikh, appealed to the prime minister to declare an “export emergency” and immediately convene a meeting of all exporting sector associations.

In a statement, the PHMA said the value-added apparel and textile sector is facing the highest manufacturing costs in its history, coupled with an unbearable burden of taxes, duties and financial constraints.

The situation has worsened following the shift in the taxation regime from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR), amendments in the Export Facilitation Scheme that have undermined liquidity, and delays in the approval and implementation of the National Apparel & Textile Policy 2025–30 along with its supporting export package.

The PHMA stressed that the sector urgently needs the continuation of Duty Drawback on Local Taxes and Levies (DLTL) and the reintroduction of regionally competitive energy tariffs to remain viable in global markets.

The association expressed serious concern over what it termed preferential treatment to a single sector. It pointed out that the rice sector, with exports of around USD 3 billion, has reportedly been granted support worth billions of rupees from the Export Development Fund (EDF) under the DLTL mechanism, while the value-added apparel and textile sector — contributing USD 18 billion to national exports, earning the highest foreign exchange and providing the largest urban employment — has been ignored.

The PHMA said that all EDF projects of PHMA and other associations have been put on hold, while approximately Rs 5 billion in DLTL payments to exporters has remained pending since 2014–15. The association termed this approach unjust and against the national interest, urging the Prime Minister to ensure equal support for all exporting sectors.

The PHMA office-bearers said member industries from across Pakistan have conveyed serious reservations over favouring a single sector through EDF support, when all exporting sectors face similar competitiveness challenges.

Textile exporters, they added, are also confronting additional pressures from costly compliance requirements arising from the EU Green Deal and Due Diligence Directives under the GSP Plus framework, as well as the new US tariffs regime, which has pushed the country’s largest exporting sector towards unviability.

They warned that with 2027 approaching rapidly, immediate facilitation measures are essential to ensure sustainability and growth in exports.

The PHMA further disclosed that during a joint meeting held today with leading exporting associations, including all textile sub-sector bodies and other sectors, it had strongly opposed the proposal submitted by REAP and the rice sector at the 91st meeting of the EDF Board of Administrators held on January 19, 2026. The PHMA conveyed that identical challenges are being faced by the value-added apparel and textile sector, which accounts for 55 percent of national exports and is a major contributor to the EDF, as well as by other agricultural export sectors such as fruits, vegetables and agro-based products.

The association also objected to the utilisation of EDF funds without the approval of contributing exporter associations and stated that the said EDF meeting was convened in violation of Section 8 of the EDF Act.

The PHMA urged the federal government to adopt a principled approach by according equal treatment to all exporting sectors, instead of favouring one, to safeguard Pakistan’s export base and broader economic interests.

Copyright Business Recorder, 2026