Pakistan risks missing global supply chain shift without pro-export budget measures: PTC

Pakistan could miss a major opportunity to boost exports and attract global buyers relocating supply chains unless the federal budget for FY27 provides immediate relief to exporters, the Pakistan Textile Council (PTC) warned on Friday.

In a letter addressed to Prime Minister Shehbaz Sharif, PTC Chairman Fawad Anwar said international buyers were increasingly diversifying sourcing away from traditional manufacturing hubs and exploring alternative destinations across Asia, presenting a significant opportunity for Pakistan.

According to the council, Pakistan has a complete cotton-to-garment value chain, an experienced export sector and longstanding relationships with international brands, but rising production costs and policy distortions are undermining its competitiveness.

The PTC noted that Pakistan’s merchandise exports during the first 11 months of FY26 were $1.66 billion lower than the corresponding period of the previous fiscal year despite an improvement in global demand.

“Global buyers are looking for alternatives and Pakistan is on their radar. The question is whether we will seize this opportunity or price ourselves out of the market,” Anwar said in the letter.

While acknowledging the government’s efforts to achieve macroeconomic stability, the textile body argued that economic stabilisation alone would not generate employment, foreign exchange earnings or investment.

“Stabilisation is not growth. Pakistan’s next economic chapter must be written through exports. Every successful economy that escaped recurring balance-of-payments crises did so by expanding exports, not by increasing taxation on its export sector,” Anwar said.

The council urged the government to make Budget FY27 export-oriented by restoring a competitive tax framework through the reintroduction of the Final Tax Regime (FTR), reducing industrial energy tariffs to levels comparable with regional competitors, and ensuring the timely release of pending export refunds and withheld tax payments.

According to the PTC, exporters are facing some of the highest energy costs in Asia, while billions of rupees remain tied up in outstanding refunds, limiting their ability to invest and expand operations.

The council said the textile and apparel sector remained Pakistan’s largest export industry and one of the few sectors capable of delivering rapid export growth, large-scale job creation and sustainable foreign exchange earnings.

“Pakistan has a narrow but real window of opportunity. If the right decisions are taken in this budget, exports can become the engine of growth. If not, competing countries will capture the business that could have come to Pakistan,” Anwar warned.

The PTC said it was ready to work with the government on practical and data-driven reforms aimed at enhancing the global competitiveness of Pakistan’s textile and apparel industry and supporting an export-led growth strategy.