The government has constituted a dedicated technical committee under the direction of Prime Minister Shehbaz Sharif to review constraints under the Export Facilitation Scheme (EFS), particularly the limited utilisation period that exporters say is restricting operational flexibility.
The committee is tasked with submitting its recommendations to resolve these constraints immediately.
The development came during a high-level meeting of Federal Minister for Commerce Jam Kamal Khan, accompanied by senior officers of Ministry of Commerce, with chairmen and representatives of Pakistan Hosiery Manufacturers and Exporters Association (PHMA), Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), Pakistan Textile Council (PTC), Pakistan Textile Exporters Association (PTEA), All Pakistan Bedsheets and Upholstery Manufacturers Association (APBUMA), and Towel Manufacturers Association (TMA) at the Ministry of Commerce.
According to a statement released on Friday, the meeting was held to thoroughly examine the key challenges facing the value-added apparel and textile sector and devise strategic measures aimed at strengthening its global competitiveness and substantially accelerating export growth.
During the meeting, the industry representatives delivered a detailed presentation outlining the key challenges impeding export growth, notably the substantial burden of upfront taxes; elevated energy tariffs combined with infrastructural limitations; ongoing liquidity constraints caused by pending refunds; limitations under temporary importation scheme, including reduced utilization periods; insufficient credit limits under Export Finance Scheme that restrict access to necessary working capital; and repeated policy shifts that significantly curtail the sector’s export expansion potential.
Jam Kamal reaffirmed the government’s support, recognising the value-added apparel and textile sector as a cornerstone of Pakistan’s exports and employment generation.
“Pakistan is one of the few countries in the world with a vertically integrated supply chain, which is contributing significantly in socio-economic development of the country, and the government will extend maximum support for its sustainability and growth,” he said.
Meanwhile, representatives of Micro, Small and Medium Enterprises (MSMEs) suggested that the State Bank of Pakistan and EXIM Bank issue clear and explicit regulatory guidelines to ensure the uniform acceptance of foreign master Letters of Credit (LCs) by commercial banks as collateral for opening Back-to-Back LCs, thereby enhancing exporters access to working capital and enabling them to further untap global business opportunities.
They further advocated for the inclusion of representatives from value-added exporters on the SMEDA Board and other pertinent forums, to promote greater inclusivity and ensure active participation in policy formulation processes.
The federal minister reiterated the Ministry of Commerce’s unwavering commitment to providing all necessary facilitation to exporters, including MSMEs. He further assured that matters concerning back-to-back LCs would be actively pursued with the relevant authorities to ensure smoother and more effective implementation.
Industry representatives also stressed the urgent need to align Pakistan’s export policy with those of regional competitors to enhance global competitiveness.
They affirmed that such alignment is essential for strengthening Pakistan’s position in international markets, while highlighting the critical importance of long-term policy stability and the swift implementation of measures to reinforce and safeguard the sector’s competitive position, read the statement.
The minister expressed optimism about increasing national exports through coordinated and inclusive engagement. He encouraged the industry to focus on potential in existing markets, explore new markets and diversify more to high-value finished products.
He further invited consolidated proposals from the apparel and textile industry, stating that the ministry would categorise them into immediate, budget-linked and structural reforms, and submit to the prime minister for final consideration.
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