Pakistan’s textile and apparel industry has presented a detailed set of recommendations for the Federal Budget 2026-27, urging the government to introduce immediate relief measures aimed at boosting industrial growth, exports, and economic stability.
The proposals mainly focus on lowering production costs, easing financial pressure on exporters, improving energy affordability, and creating a business-friendly environment that can attract local and foreign investment. Industry leaders believe that without timely reforms, Pakistan’s largest export-oriented sector could continue to face declining competitiveness in global markets.
The recommendations were discussed during a meeting chaired by Finance Minister Muhammad Aurangzeb. The session included representatives from major textile associations, exporters, chambers of commerce, and other stakeholders from across Pakistan.
According to industry representatives, the textile sector is currently struggling with rising operational expenses, expensive electricity and gas tariffs, delayed tax refunds, and limited access to affordable financing. They stressed that these challenges are reducing industrial output and making Pakistani products less competitive internationally.
Stakeholders urged the government to introduce targeted tax reforms that could improve cash flow for exporters. The industry emphasized the need for faster processing of refunds and rationalization of taxes to reduce the financial burden on manufacturers.
Another major concern highlighted during the meeting was the increasing cost of energy. Textile manufacturers requested competitive electricity and gas tariffs to help factories maintain production levels and avoid further closures. They argued that affordable energy is essential for sustaining exports and preserving employment opportunities linked to the textile value chain.
Industry leaders also proposed incentives for technological modernization and machinery upgrades. They stated that investment in advanced manufacturing systems would help Pakistan improve productivity, product quality, and export diversification in international markets.
The sector further called for long-term economic policies that provide consistency and predictability for businesses. According to exporters, frequent policy changes create uncertainty and discourage investors from expanding operations in Pakistan’s industrial sector.
The textile industry remains one of Pakistan’s most important economic pillars, contributing significantly to exports, employment, and foreign exchange earnings. Experts believe that supportive measures in the upcoming budget could help revive industrial confidence and strengthen the country’s export performance during the next fiscal year.
Finance Minister Muhammad Aurangzeb assured participants that the government would review the proposals carefully while preparing the Federal Budget 2026-27. The meeting reflects ongoing efforts between policymakers and industry stakeholders to address economic challenges and support industrial recovery.
