ISLAMABAD: The Pakistan Textile Council (PTC) has urged the federal government to use Budget 2026-27 as a decisive opportunity to restore the competitiveness of Pakistan’s export sector, warning that economic stabilization alone will not deliver sustainable growth without a strong export-led strategy.
Sources in the commerce ministry told Business Recorder, the Council has also written a letter to Prime Minister Muhammad Shehbaz Sharif, appreciating the government’s engagement with business leaders ahead of the budget but stressed that policy commitments must now translate into concrete relief measures for exporters.
According to PTC, Pakistan’s merchandise exports during the first eleven months of FY2025-26 remained USD 1.66 billion below the corresponding period of the previous year, reflecting the cumulative impact of high energy costs, delayed refunds, and an increasingly burdensome tax regime on export-oriented industries.
READ MORE: PTC for competitive budget steps to revive exports & industries
The government has been apprised that Pakistan today stands before a rare window of opportunity as global supply chains are being restructured, and international buyers are actively seeking alternative sourcing destinations. Pakistan possesses a vertically integrated cotton-to-garment value chain and long-established export relationships, but these advantages can only be leveraged if the policy environment supports competitiveness rather than undermines it.
The Council emphasized that export-led growth remains the most viable pathway for generating foreign exchange, creating employment, and strengthening Pakistan’s long-term economic resilience.
The PTC called upon the government to prioritize three immediate measures in the upcoming budget: the reintroduction of the Final Tax Regime (FTR) for exporters, reduction of industrial energy tariffs to regionally competitive levels, and clearance of outstanding export refunds through a transparent and time-bound mechanism.
“Pakistan has worked hard to achieve macroeconomic stability, but stabilization is not growth,” said Chairman PTC adding that “the next chapter of Pakistan’s economic recovery must be written through exports, investment, and industrial expansion.”
The Council reiterated its willingness to work closely with the government by providing technical input, sectoral data and policy support to help achieve the country’s export and economic growth objectives.
Copyright Business Recorder, 2026
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