Karachi: Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, has expressed deep concern over the ongoing competitiveness emergency facing the country\u2019s export-oriented textile sector. While acknowledging the positive trajectory of the domestic manufacturing base and the modernization of financial markets, the former provincial minister warned that the backbone of Pakistan\u2019s economy is under severe threat from exorbitant input costs, shifting regional trade alliances, and mounting geopolitical tensions. Addressing the business community today, Mian Zahid Hussain noted that the national economy is currently navigating a highly volatile stabilization-to-growth phase. Staff Reporter
\nHe appreciated the robust performance of the Large-Scale Manufacturing sector, which recorded a remarkable 10.54 percent year-on-year growth in January 2026, largely driven by a 67.3 percent surge in automobile production and an 11.5 percent increase in cement dispatches.
\nHe also commended the government for the historic job creation witnessed in February in manufacturing sector and the successful transition of the Pakistan Stock Exchange to a T+1 settlement cycle, even as the KSE-100 index faces a corrective phase down to 148,743 points due to the Iran war and Strait of Hormuz crisis.
\nFurthermore, he welcomed the operationalization of the Export Development Fund (Amendment) Act 2026, transferring control to a private-sector-led board, and the recent relaxation of land-route trade rules with Iran for essential food items and pharmaceuticals.
\nHowever, the seasoned business leader strongly cautioned that these domestic victories will be eclipsed if the government does not urgently address the red alert in the textile industry, which accounts for around sixty percent of National exports.
\nHe pointed out that textile exports witnessed a sharp 7.22 percent decline in February 2026, plummeting to 1.31 billion dollars and reversing earlier nominal gains. Value-added products, particularly knitwear, have suffered steep declines across traditional markets in the United Kingdom, the European Union, and the United States.
\nHe attributed this collapse directly to a fatal cost trap, identifying exorbitant industrial energy tariffs hovering between 11 and 13 cents per kilowatt-hour, which are nearly double the rates enjoyed by regional competitors like Vietnam and India.
\nMian Zahid Hussain highlighted the impending catastrophe posed by the recent trade agreement between EU and India, on Pakistan\u2019s textile exports, projecting a devastating potential export loss of up to 3-4 billion dollars if the government fails to negotiate effectively or offset the burden.
\nAdditionally, he appreciated the amendments in EFS through SRO 1435(I)\/2025 dated August 5, 2025, which have excluded cotton, yarn, and grey cloth from zero-rating, making local market players competitive.
\nIn his concluding remarks, Mian Zahid Hussain urged federal policymakers to immediately decouple the export sector from domestic energy inefficiencies. He demanded the swift introduction of a comprehensive Energy Support Package to rationalize electricity tariffs at a globally competitive 7 to 8 cents for export-oriented units.
\nHe emphasized that without immediate diplomatic and fiscal intervention to counter the global fuel crisis and tariff pressures, Pakistan risks a significant loss of its industrial base and international market share.<\/p>\n","protected":false},"excerpt":{"rendered":"
Karachi: Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, has expressed deep concern over the ongoing competitiveness emergency facing the country\u2019s export-oriented textile sector. While acknowledging the positive trajectory of the domestic manufacturing […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-539554","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n