Pakistan’s textile sector moving towards collapse: FPCCI leader

LAHORE: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) leader and Patron-in-Chief UBG S. M. Tanveer has lamented that the textile sector in Pakistan is collapsing fast due to highest interest rates and tax rates among regional competitors. Both of these factors are killing the industry, he warned.

According to him, Pakistan has the double advance tax on exporters. They are forced to pay 2% of turnover in advance tax, double what domestic businesses pay. He deplored that no one is fixing it despite the fact that all ministers admit its anti-export.

He said, electricity connections and load enhancements being delayed and denied across Karachi and Lasbela. LIEDA units are forced to run on gas, then penalized with the levy. In addition, B3 power tariff is up from 10.5 cents/kWh In May 2025 to 12.6 cents/kWh in Nov 2025 while the competitors pay 5-9 cents/kWh in the region.

Tanveer further pointed out that the industry is being billed tens of billions for retrospective RLNG adjustments dating back a decade without transparency, without consultation.

He said a levy with incorrect calculations is being imposed on gas-fired captive power users. Government accepts its wrong; yet refuses to revise it.

According to him, no big EFS culprit is being caught despite a flood of imported yarn and fabric wiping out local industry.

Further, he said FBR sending Rs. 5 million bills to dying mills for video surveillance, which suggests that the FBR wants cameras, not revenue.

So far, he said, over 100 textile mills shut down and more are closing on daily basis, a situation leading to massive unemployment, loss of export earnings and loss of tax revenues.

The FPCCI leader has urged the government o resolve the crisis, as there are plenty of announcements but there is no plan, no execution and no results.

Copyright Business Recorder, 2025