ISLAMABAD: Pakistan could squander one of the biggest export opportunities in decades unless Budget 2026-27 delivers immediate relief to exporters, Pakistan Textile Council (PTC) Chairman Fawad Anwar has cautioned in a letter addressed to Prime Minister Shehbaz Sharif. The warning comes at a time when international buyers are actively diversifying supply chains away from traditional sourcing hubs and exploring alternative destinations across Asia.
According to PTC, Pakistan possesses all the ingredients needed to benefit from this shift, including a complete cotton-to-garment value chain, an experienced export industry, and established relationships with global brands. However, high production costs and policy distortions have been rapidly eroding that advantage.
In his communication to the Prime Minister, Fawad Anwar noted that Pakistan's merchandise exports during the first eleven months of FY2025-26 remained $1.66 billion lower than the corresponding period of last year despite improving global demand. "Global buyers are looking for alternatives and Pakistan is on their radar. The question is whether we will seize this opportunity or price ourselves out of the market," said Anwar.
Stabilization Not Enough
The PTC chairman cautioned that though macroeconomic stabilization has been achieved through difficult reforms, stabilization alone cannot create jobs, generate foreign exchange, or attract investment. "Stabilization is not growth. Pakistan's next economic chapter must be written through exports. Every successful economy that escaped recurring balance-of-payments crises did so by expanding exports, not by increasing taxation on its export sector," he observed.
Three Key Demands
The council has urged the government to make Budget 2026-27 a pro-export budget by focusing on three immediate priorities:
- Restoration of a competitive tax framework for exporters through reintroduction of the Final Tax Regime (FTR);
- Reduction of industrial energy tariffs to levels comparable with regional competitors;
- Immediate release of outstanding export refunds and withheld tax payments through a transparent, time-bound mechanism.
PTC further argued that exporters are currently facing some of the highest energy costs in Asia while billions of rupees remain locked in pending refunds, restricting investment and expansion. According to the council, Pakistan's textile and apparel sector remains the country's largest export industry and one of the few sectors capable of delivering rapid export growth, large-scale employment, and sustainable foreign exchange earnings.
Narrow Window of Opportunity
"Pakistan has a narrow but real window of opportunity. If the right decisions are taken in this budget, exports can become the engine of growth. If not, competing countries will capture the business that could have come to Pakistan," Anwar warned. The council reiterated its willingness to work closely with the government in developing practical, data-driven reforms aimed at making Pakistan's textile and apparel industry globally competitive and placing the economy on a sustainable export-led growth path.
