ISLAMABAD: Amid the government’s narrative of returning to macroeconomic stability, the country’s textile exporters upped the ante against uncompetitive energy costs, high tax rates and challenging financial costs and demanded broad-based fiscal space to compete globally.
A large delegation of the All Pakistan Textile Mills Association (Aptma) on Wednesday had an urgent meeting with a government team comprising Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik to reduce energy costs, taxes, and interest rates to single digits.
The finance minister assured the industry of the government’s continued engagement to address key challenges facing the textile sector, as it remains a cornerstone of Pakistan’s economy due to its significant contribution to exports, employment, and industrial activity.
Given the IMF compulsions, the minister reiterated the “resolve to support its sustainability within the broader economic reform framework”.
The industry demanded the removal of Rs4-7 per unit cross-subsidy component from the industrial tariff, withdrawal of Rs3.23 per unit debt servicing surcharge and abolition of peak energy rates at night to a flat rate.
They also demanded abolition of advance tax on exports, fully automated and fast-tracked payment of refunds, removal of super-tax and allocation of Rs30bn funds from the export development fund for exporters.
Seek broad-based fiscal space to compete globally
On top, they also want an immediate reduction in policy rate to 9pc and gradually to 6%, and restoration of the concessionary export refinance scheme. All these demands are, in one way or another, tied to IMF programme conditionalities.
The prime minister had recently sought relaxations from the IMF to trigger economic growth — a subject that would only be discussed at the third programme review next month and within the programme’s underlying objectives — fiscal and monetary surpluses.
An official statement said the two ministers reaffirmed the government’s commitment to maintaining a fair and predictable policy environment for businesses, with equity, transparency and broad-based participation across the economy.
It was emphasised that efforts were underway to address the genuine concerns of compliant sectors while advancing structural reforms through consultation and institutional processes.
The government team acknowledged the concerns raised by the delegation and reported that government was actively reviewing various issues affecting the cost of doing business for export-oriented industries.
Energy affordability and reliability remain important priorities of the government and that relevant options were being examined in consultation with concerned ministries and stakeholders to improve efficiency and competitiveness, while ensuring fiscal responsibility and system sustainability.
The finance minister said the reforms in the energy sector were being pursued in a balanced manner to support industrial productivity and protect the long-term interests of the national economy but immediate issues requiring attention were being reviewed on priority, while broader policy matters would be taken forward through established budgetary and reform mechanisms.
Issues related to operational constraints and supply-side challenges in certain industrial areas were also discussed and the ministers assured the delegation that coordination with relevant authorities would continue to ensure smooth industrial operations.
The Aptma delegation complained about pressures being faced by exporters in an increasingly competitive global environment and rising input costs creating challenges for the sector. They sought a supportive and stable operating framework to sustain export growth and employment.
Published in Dawn, January 29th, 2026
