Garment manufacturers: Ministers vow to help resolve issues

LAHORE: Federal Minister for Defence, Khawaja Muhammad Asif and Federal Minister for Planning, Development and Special Initiatives, Prof Ahsan Iqbal have pledged to raise the concerns of exporters at the highest levels of government quarters.

Speaking at Exporters’ Convention hosted by the Pakistan Readymade Garments Manufacturers & Exporters Association (Prgmea), both ministers assured the industry of their unwavering support.

The event was attended by representatives from PHMA, PSGMEA, PGMEA, SIMAP, PLGMEA and the Sialkot Chamber of Commerce and Industry (SCCI).

Prof Ahsan Iqbal acknowledged that Pakistan’s exports, which currently stand at around $32 billion, are lagging behind regional competitors like Bangladesh, India, and Vietnam.

“We need a unified, export-led growth strategy. Cities like Sialkot—with their entrepreneurial spirit and globally recognized products—must take the lead,” he said.

He emphasised that economic revival hinges on building a stable, business-friendly environment and reducing the cost of doing business to restore Pakistan’s competitive edge.

Khawaja Muhammad Asif reaffirmed that the concerns of Sialkot’s exporters would be prioritized. He noted that abrupt policy changes and increasing tax burdens are harming productivity.

“Sialkot’s SMEs form the backbone of Pakistan’s export economy. We will not allow them to collapse under bureaucratic pressure,” he said. He also assured that refund claims and other tax-related issues would be addressed at the highest level to create a stable and supportive environment for exporters.

Ijaz A Khokhar, former central chairman of Prgmea voiced serious concern over the recent amendments to the Export Facilitation Scheme (EFS), especially regarding temporary imports for re-export.

He warned that reduced utilisation periods and new bank guarantee requirements will disproportionately affect SMEs, which already operate on tight margins. “Such policy shifts jeopardize not only our competitiveness but the very foundation of Pakistan’s export engine,” he stressed.

Sohail A Sheikh, a former Prgmea chairman, criticised the sudden shift from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR). He said the new model introduces unpredictability in tax liabilities and increases compliance burdens. “This transition was implemented without stakeholder consultation. It has shaken industry confidence and harmed planning and cash flow certainty,” he noted.

Copyright Business Recorder, 2025