LAHORE: Pakistan Hosiery Manufacturers Association (PHMA) on Tuesday echoed the growing alarm across the textile industry, warning that the country’s export engine is approaching a dangerous tipping point and requires immediate, coordinated intervention.
Aligning with recent concerns raised by industry bodies, PHMA leaders say the continued erosion of competitiveness is now translating into factory slowdowns, workforce reductions and the steady loss of international buyers.
PHMA Zonal Chairman Abdul Hameed said the industry’s difficulties are no longer theoretical and are being felt daily on factory floors. He noted that hosiery exporters, despite having capacity and confirmed orders, are struggling to remain viable due to soaring energy costs, delayed refunds and unpredictable policy changes.
According to him, exporters are being priced out of global markets where buyers are extremely sensitive to cost and delivery reliability. He warned that if the current trajectory continues, Pakistan risks surrendering hard-earned market share to regional competitors who offer more stable and cost-efficient production environments.
Former PHMA Chairman Shehzad Azam Khan stressed that the decline in exports should be viewed as a national economic warning rather than a sector-specific complaint. He said textiles, particularly value-added segments like hosiery, are among the few industries capable of generating large-scale employment and foreign exchange simultaneously. Any sustained contraction, he added, directly impacts foreign reserves, exchange rate stability and inflation. He argued that repeated short-term fixes and ad hoc measures have failed to address the core issue of competitiveness and that exporters cannot plan investments or retain buyers in an environment marked by uncertainty.
Former PHMA Zonal Chairman Naseer Butt highlighted the liquidity crunch facing hosiery manufacturers, noting that blocked refunds and rising financing costs have severely restricted working capital. He said many small and medium units are operating below capacity or have temporarily shut down because they cannot sustain production cycles without timely cash flows. Naseer Butt cautioned that closures in the hosiery segment have a cascading impact, affecting yarn suppliers, processors, transporters and thousands of workers linked to the value chain.
PHMA leadership collectively urged the government to treat exports as a strategic priority rather than a residual outcome of macroeconomic stabilisation. The association called for regionally competitive and predictable energy pricing for exporters, streamlined and automated refund mechanisms, and a stable policy framework that allows manufacturers to plan investments with confidence.
Copyright Business Recorder, 2026
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