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ISLAMABAD, June6 ,2026: Pakistan risks missing a major global supply chain opportunity unless Budget 2026-27 delivers urgent relief to exporters, Pakistan Textile Council (PTC) Chairman Fawad Anwar warns in a letter to Prime Minister Shehbaz Sharif.
Meanwhile, global buyers actively shift sourcing away from traditional markets and explore new suppliers in Asia. As a result, Pakistan has a real chance to benefit. The country already holds a complete cotton-to-garment value chain, an experienced export base, and strong global linkages. However, rising costs and policy distortions continue to weaken this advantage.
In his letter, Anwar notes that Pakistan’s merchandise exports fell by USD 1.66 billion during the first eleven months of FY2025-26 compared to last year, even though global demand improved.
“Global buyers are moving fast. Pakistan is on their radar. However, we risk pricing ourselves out if we fail to act,” he says.
Moreover, he stresses that macroeconomic stabilization alone cannot drive growth. It may support reforms, but it does not create jobs or boost exports.
“Stabilization is not growth,” he adds. “Therefore, Pakistan must anchor its next phase of development in exports. Successful economies expanded exports instead of increasing pressure on the export sector.”
In response, PTC urges the government to shape Budget 2026-27 around three immediate steps. First, it calls for restoring a competitive tax regime through the Final Tax Regime (FTR). Second, it demands lower industrial energy tariffs in line with regional competitors. Third, it pushes for the immediate clearance of pending export refunds and tax payments through a transparent timeline.
Additionally, the council highlights that exporters face some of Asia’s highest energy costs. At the same time, large refund arrears remain blocked, which limits investment and expansion.
PTC says the textile and apparel sector remains Pakistan’s strongest export engine. It can quickly generate growth, jobs, and foreign exchange if supported properly.
“Pakistan has a narrow window,” Anwar warns. “If policymakers act now, exports can lead growth. If not, competitors will capture the opportunity.”
Finally, the council expresses its willingness to work with the government on practical reforms. It aims to build a competitive, export-led economic path for long-term stability.
