Value-added textile exporters reject the PM’s claim of slackness

LAHORE: Value-added textile exporters have rejected Prime Minister Shehbaz Sharif’s claim that some export-oriented industries have enjoyed decades of government support without delivering results, saying Pakistan’s export performance must be judged against its high cost of doing business and fierce global competition.

The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) and the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) said the value-added sector remains the country’s main export engine and earns a major share of textile foreign exchange despite high domestic costs.

They cited official figures showing textile exports rose 5.55 per cent to $3.379 billion in July-August 2026, while readymade garment exports grew 13.59 per cent to $827 million.

The exporters said the prime minister’s remarks ignored the full export record and unfairly blamed exporters for Pakistan’s competitiveness problems.

Government support, they argued, should not be confused with the real cost of running an export factory. They stressed they were not seeking charity or protection, but competitive electricity and gas prices, affordable working capital, timely refunds, predictable taxation and a supportive business environment.

Pakistani firms, they noted, compete against Bangladesh, India, Vietnam, China and other sourcing countries, and every rise in energy, financing, tax and compliance costs directly affects the prices offered to international buyers.

Abdul Hameed, former PHMA chairman, said export performance cannot be separated from the cost of doing business, as exporters are asked to raise earnings while facing costly energy and financing, tax pressure and liquidity constraints.

“The issue is not whether exporters should deliver, but whether Pakistan is providing them with conditions in which they can compete for international orders,” he said.

PHMA Zonal Vice Chairman Izharul Haq said the industry was not seeking special treatment for a few companies but a transparent, uniform and predictable export policy for every genuine exporter.

Selective policies, he said, create distortions, while a level playing field encourages investment and expansion.

PRGMEA Central Chairman Sohail Afzal Sheikh said the apparel industry is undergoing a major transformation as global buyers demand sustainability, traceability, digitalisation and higher standards.

He called for competitive energy costs, timely refunds and rebates, simpler regulations, better access to finance and more efficient trade facilitation.

Former PRGMEA chairman Ijaz Khokhar said ease of doing business and consistent long-term policies were equally vital for competitiveness, investment and expansion planning. PRGMEA has recently named cheaper utilities, timely refunds and a stable export policy as the industry’s major concerns.

The exporters also highlighted liquidity problems, saying delayed refunds and export payments tie up capital needed for raw materials, wages, machinery and capacity expansion.

They had recently asked for a roadmap to clear outstanding refunds and for removal of the industrial power cross-subsidy to ease the cost burden on exporters.

Taking a longer view, they said textile exports reached $17.932 billion in fiscal year 2025-26, though annual growth was only 0.26 per cent, while readymade garment exports rose 3.87 per cent to $4.288 billion. These figures, they said, show both the sector’s contribution to the economy and the constraints holding back faster growth.

The exporters argued that the answer is not collective blame but addressing structural disadvantages. They said the national debate should focus on measurable outcomes such as export growth, productivity, investment, employment, market expansion and foreign-exchange earnings, rather than generalised allegations.

“The issue is not whether exporters should deliver. They are delivering and can deliver much more. The real question is whether Pakistan wants to provide a policy and cost environment in which exporters can compete with Bangladesh, India, Vietnam and China on equal terms,” they said.

They urged the government to adopt clear, transparent and uniform export policies for all exporters, improve ease of doing business and set up a stable, long-term policy framework, with the focus on raising overall exports rather than benefiting selected units.

Copyright Business Recorder, 2026