ISLAMABAD: A week after the passage of the federal budget 2026-27, exporters have urged the government to fulfil their key demands, including the removal of the cross-subsidy and the announcement of a roadmap for clearing outstanding refunds amounting to Rs327 billion to promote exports.

The issues were discussed in a meeting with Minister of State for Finance Bilal Kayani, who was tasked by Prime Minister Shehbaz Sharif with resolving the export sector’s outstanding concerns. The exporters’ delegation included Khurram Mukhtar, Patron-in-Chief of the Pakistan Textile Exporters Association, Javed Bilwani, former president of the Karachi Chamber of Commerce and Industry, Syed Ahtisham, President of the Sialkot Chamber of Commerce and Industry, Rana Imran, Jamshed Murtaza, Zubair Motiwala (former president, KCCI), and Aslam Pakhali (CEO, FA International).

An official announcement said the delegation reiterated its demand for the removal of the cross-subsidy from the B3/B4 industrial power tariff, an issue raised earlier at the industry’s meeting with the prime minister.

Moreover, representatives stressed that the cross-subsidy continues to inflate energy costs and undermine the competitiveness of export-oriented industries. Textile exporters are aiming to surpass the FY27 export target. Power is one of the largest conversion costs — so every step toward competitiveness carries significant value. Most B3 and B4 mills are export-oriented, so fixing the voltage anomaly feeds directly into the export drive, it was pointed out in the meeting.

Industry demands removal of cross-subsidy

The industry also drew attention to a significant backlog of pending refunds, including deferred sales tax, duty drawback, income tax, DLTL (Drawback of Local Taxes and Levies), and TUF (Technology Upgradation Fund) claims, urging the authorities to expedite their release to ease the liquidity pressures faced by exporters. The threshold for sales tax refunds, particularly for commercial SME exporters, also formed part of the discussion, with the delegation seeking relief tailored to smaller exporters.

In response to the demands, the FBR agreed to notify committees to address the taxation issues raised. Follow-up meetings on energy tariffs and other outstanding matters are expected in the coming days. The delegation was assured that the government would take all necessary steps to facilitate exporters, giving them the highest priority. The representatives of the business community shared their perspectives on enhancing the ease of doing business, improving operational efficiency, and strengthening Pakistan’s export competitiveness.

Published in Dawn, June 30th, 2026