Textile Exporters Seek Counter Strategy on U.S. Tariff Impact

Federal Minister for Planning, Development and Special Initiatives,
Prof. Ahsan Iqbal, and Federal Minister for Defence, Khawaja Muhammad
Asif, have pledged to raise the critical concerns of exporters at the
highest levels of government.



Speaking at a high-level Exporters’ Convention hosted by the Pakistan
Readymade Garments Manufacturers & Exporters Association (PRGMEA) in
Sialkot, both ministers assured the industry of their unwavering
support. The event was attended by representatives from PHMA, PSGMEA,
PGMEA, SIMAP, PLGMEA, and the Sialkot Chamber of Commerce and Industry
(SCCI).



Prof. Ahsan Iqbal acknowledged that Pakistan’s exports, which
currently stand at around $32 billion, are lagging behind regional
competitors like Bangladesh, India, and Vietnam. “We need a unified,
export-led growth strategy. Cities like Sialkot—with their
entrepreneurial spirit and globally recognized products—must take the
lead,” he said. He emphasized that economic revival hinges on building
a stable, business-friendly environment and reducing the cost of doing
business to restore Pakistan’s competitive edge.



Khawaja Muhammad Asif reaffirmed that the concerns of Sialkot’s
exporters would be prioritized. He noted that abrupt policy changes
and increasing tax burdens are harming productivity. “Sialkot’s SMEs
form the backbone of Pakistan’s export economy. We will not allow them
to collapse under bureaucratic pressure,” he said. He also assured
that refund claims and other tax-related issues would be addressed at
the highest level to create a stable and supportive environment for
exporters.



Ijaz A. Khokhar, former Central Chairman of PRGMEA, voiced serious
concern over the recent amendments to the Export Facilitation Scheme
(EFS), especially regarding temporary imports for re-export. He warned
that reduced utilization periods and new bank guarantee requirements
will disproportionately affect SMEs, which already operate on tight
margins. “Such policy shifts jeopardize not only our competitiveness
but the very foundation of Pakistan’s export engine,” he stressed.



Adding to this, Mr. Ansar Aziz, Executive Member of PRGMEA,
highlighted the urgent need for targeted SME support mechanisms and
low-cost financing to help exporters navigate mounting economic
pressures. “Our SMEs are the lifeblood of innovation and job creation.
Without tangible support, we risk losing this backbone,” he said.



Sohail A. Sheikh, also a former PRGMEA Chairman, criticized the sudden
shift from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR).
He said the new model introduces unpredictability in tax liabilities
and increases compliance burdens. “This transition was implemented
without stakeholder consultation. It has shaken industry confidence
and harmed planning and cash flow certainty,” he noted.



Both PRGMEA leaders expressed alarm over the newly imposed 29%
reciprocal U.S. tariffs on Pakistani exports. They reported growing
buyer hesitancy, delayed shipments, and increasing order
cancellations—diverting business to regional rivals like Bangladesh,
India and Vietnam. “Restoring buyer confidence in the U.S. is
essential,” said Sheikh. “We urge the government to send a trade
delegation to Washington D.C. to engage directly with U.S. officials
and negotiate tariff exemptions for low-volume countries like
Pakistan. This could serve as a strategic opportunity to convert
current challenges into a pathway for enhancing Pakistan’s export
growth and global trade presence”



The PRGMEA also demanded fast-track clearance of stuck shipments, duty
drawbacks, and the establishment of an Export Development Bank to
provide affordable credit to SMEs.



Mr. Ijaz A. Khokhar and Mr. Soahil A. Sheikh emphasized that achieving
cost competitiveness and ease of doing business is crucial to securing
Pakistan’s export future. They called for long-term policy consistency
and alignment with Prime Minister’s Uraan Pakistan Vision, which aims
to double exports and position Pakistan as a globally competitive
manufacturing hub.

In a powerful display of unity, PRGMEA, PHMA, PSGMEA, PGMEA, SIMAP,
PLGMEA, and SCCI jointly appealed for immediate policy support to
stabilize the export sector and empower SMEs. “If we want to see
sustainable, inclusive growth—exporters must be heard, and their
concerns acted upon,” concluded Ijaz A. Khokhar.