PHMA assails federal budget for ‘ignoring’ challenges facing export sector
LAHORE: The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) on Thursday expre-ssed concern over the Federal Budget 2026-27, stating that it does not adequately address the key challenges confronting the export sector and lacks meaningful measures needed to accelerate export-led economic growth and improve Pakistan’s competitiveness in international markets.
PHMA Zonal Chairman Abdul Hameed acknowledged the government’s efforts to maintain economic stability but emphasised that exporters were expecting a more comprehensive and growth-oriented package to strengthen Pakistan’s exports and enhance global competitiveness.
The PHMA leader observed that despite repeated commitments to promote exports, the budget offers limited relief to exporters who continue to face mounting challenges. He noted that competing countries in the region are providing substantial incentives, affordable energy, lower financing costs, and supportive industrial policies, enabling their exporters to capture a larger share of global markets. In contrast, Pakistani exporters are struggling with rising production costs, high energy tariffs, increasing regulatory requirements, and liquidity constraints.
PHMA former chairmen Naseer Butt and Shehzad Azam pointed out that no significant policy has been announced to reduce the cost of doing business for exporters. Energy remains one of the most critical factors determining export competitiveness, yet the budget fails to provide a clear roadmap for bringing electricity and gas tariffs in line with those prevailing in competing economies.
“The export sector cannot compete effectively in international markets when energy costs remain significantly higher than those of regional competitors,” the PHMA leaders stated. “Without competitive utility rates, exporters will continue to face difficulties in securing orders, retaining customers, and expanding into new markets.”
The Association also expressed disappointment over the absence of any major initiative aimed at supporting small and medium enterprises (SMEs), which constitute a substantial segment of Pakistan’s hosiery and value-added textile industry. According to the PHMA, SMEs play a vital role in employment generation, industrial development, and export growth, yet the budget does not contain any visible measures to address their specific challenges.
Abdul Hameed stressed that sustainable export growth requires targeted support for SMEs through easier access to finance, technology upgradation schemes, skill development programs, and simplified regulatory procedures. They warned that neglecting this segment could limit the country’s ability to diversify and expand its export base.
Abdul Hameed, Naseer Butt, and Shehzad Azam welcomed the ongoing discussions regarding the restoration of exporters to the Final Tax Regime (FTR) and reiterated the long-standing demand of the export community for a simple, predictable, and business-friendly taxation system. They emphasised that exporters require policy consistency and certainty to make long-term investment decisions.
The PHMA leadership urged the government to implement a ‘One Tax Only’ framework for exporters and eliminate unnecessary complexities in tax compliance. They maintained that a simplified taxation regime would reduce administrative burdens, encourage documentation, improve transparency, and allow exporters to focus on increasing production and exports.
The Association further called for the timely processing of tax refunds and the continuation of reforms that improve liquidity within the export sector. While acknowledging the improvements achieved through the FASTER refund system, they stressed that uninterrupted cash flows remain essential for export-oriented businesses operating in highly competitive international markets.
The PHMA leaders emphasised that Pakistan’s long-term economic stability depends heavily on export-led growth, industrial expansion, and foreign exchange earnings. They urged the government to engage closely with industry stakeholders and incorporate export-friendly policies, competitive energy pricing, SME support measures, and a stable taxation framework during the budget approval process.
Copyright Business Recorder, 2026