PTC seeks 10-year fixed-rate financing, tax relief for exporters in budget

The Pakistan Textile Council (PTC) has urged the government to introduce a 10-year fixed-rate financing facility for industrial investment, restore the Final Tax Regime (FTR) for exporters and abolish advance taxes on the export sector in the federal budget for 2026-27, arguing that the measures are critical to boosting exports and attracting fresh investment.

PTC Chairman Fawad Anwar said on Monday that the export sector continues to face multiple challenges, including high financing costs, elevated energy tariffs, liquidity pressures and a complex taxation system, which are discouraging new investments and limiting export growth.

“The upcoming budget presents an opportunity to shift the economy towards investment-led and export-driven growth,” Anwar said, adding that long-term financing at fixed rates, reinstatement of FTR and the removal of advance taxes would provide certainty to investors and exporters.

He stressed that industrial projects require predictable borrowing costs and long-term financial planning. According to Anwar, a dedicated financing facility with a fixed markup rate for up to 10 years would encourage industrial expansion, technology upgrades and the establishment of new export-oriented manufacturing units.

The PTC chief also called for the elimination of multiple advance tax deductions on exporters, saying such measures negatively affect cash flows and increase the cost of doing business. He maintained that restoring the Final Tax Regime would simplify taxation, improve compliance and allow exporters to focus on expanding production and overseas sales.

Highlighting Pakistan’s export potential, Anwar said the country could benefit from the ongoing reconfiguration of global supply chains, but only if policymakers adopt reforms aimed at reducing business costs and creating a stable investment environment.

“Exports remain Pakistan’s most sustainable source of foreign exchange earnings and job creation. The right budgetary decisions can unlock new investment, increase production capacity and place the economy on a stronger growth trajectory,” he said.

The council expressed hope that Budget 2026-27 would include growth-oriented reforms to support exporters, attract investment and strengthen Pakistan’s position as a competitive manufacturing and export hub.