Lahore
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has urged the government to take immediate policy measures to safeguard the country’s value-added garment exports, warning that delays in key decisions are increasing production costs, weakening competitiveness and discouraging fresh investment at a time when Pakistan has an opportunity to expand its share in global markets.
PRGMEA North Zone Chairman Imran Salahuddin said the garment sector has demonstrated resilience despite multiple domestic and international challenges and remains one of the country’s largest providers of employment and foreign exchange.
He said the industry is fully capable of substantially increasing exports if long-standing policy issues are addressed on a priority basis.
He said the first and foremost requirement is the immediate release of pending sales tax refunds, DLTL and other admissible claims. Billions of rupees remain stuck with different government departments, severely affecting exporters’ cash flow and forcing many companies to rely on expensive bank financing for working capital.
Imran Salahuddin said one of the major concerns is the continuously rising cost of doing business. Higher electricity tariffs, gas prices, financing costs, transportation expenses and other production charges are eroding Pakistan’s competitiveness against regional exporters. He stressed that a predictable and competitive energy pricing mechanism is essential for export-oriented industries.
He added that there is an urgent need for a stable and long-term export policy. Frequent changes in taxation, regulatory procedures and trade policies create uncertainty for manufacturers and international buyers, making long-term business planning difficult. A consistent policy framework encourages fresh investment, capacity expansion and greater confidence among foreign buyers.
Former PRGMEA Chairman Ijaz Khokhar said the global apparel market is witnessing significant supply chain diversification, creating new opportunities for Pakistan. However, these opportunities can only be fully utilised if exporters are provided with a stable business environment and internationally competitive production conditions.
He said neighbouring countries are actively supporting their export industries through competitive utility tariffs, easier financing, tax facilitation and investment incentives, while Pakistani exporters continue to struggle with higher operating costs and liquidity constraints.
Ijaz Khokhar said the apparel industry has the potential to generate billions of dollars in additional export earnings and create thousands of new employment opportunities if policy support matches the sector’s contribution to the national economy. He urged the government to engage regularly with exporters while formulating trade and industrial policies so that practical solutions can be developed through consultation.
PRGMEA expressed confidence that timely government action on these issues will strengthen Pakistan’s value-added textile sector, improve industrial productivity, attract new investment and help achieve sustainable export-led economic growth.
