Government Promises Help as US Tariffs Threaten Pakistan’s Textile Exports
ISLAMABAD – Pakistan’s textile industry is facing serious challenges due to possible new tariffs from the United States. In response, two top ministers have promised to take quick action to protect exporters and help them stay strong in the global market.
Support from Top Ministers
Planning Minister Ahsan Iqbal and Defence Minister Khawaja Asif gave this assurance at a major exporters’ meeting organized by the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA). Many other industry groups also joined, including PHMA, PSGMEA, PGMEA, SIMAP, PLGMEA, and the Sialkot Chamber of Commerce and Industry (SCCI).
Minister Ahsan Iqbal admitted that Pakistan’s exports, which are around $33 billion, are far behind those of countries like Bangladesh, India, and Vietnam. He said the country needs a clear and strong plan focused on increasing exports.
“We must work together on an export-driven strategy,” he said. “Cities like Sialkot can lead with their strong businesses and world-famous products.”
He added that for Pakistan to recover economically, the government must reduce business costs and create a stable, investor-friendly environment.
Khawaja Asif: “We Will Not Let SMEs Collapse”
Defence Minister Khawaja Asif also promised that exporters in Sialkot would receive special attention. He warned that sudden changes in policies and higher taxes are hurting business productivity.
“Sialkot’s small and medium businesses are the heart of our export economy. We will not let them collapse because of red tape,” he said.
He also promised to fix issues like delayed tax refunds and other finance problems that exporters are facing.
Industry Leaders Raise Concerns
Ijaz A. Khokhar, a former chairman of PRGMEA, spoke out strongly against recent changes in the Export Facilitation Scheme (EFS). He said new rules—like shorter time limits and bank guarantee requirements—are especially hard on small businesses.
“These changes hurt our competitiveness and put the future of our export industry at risk,” he warned.
Another industry member, Ansar Aziz, said there must be better support for small businesses, including access to affordable loans.
“Our SMEs are key to innovation and jobs. If we don’t support them now, we could lose this vital part of our economy,” he added.
Former chairman Sohail A. Sheikh criticized the sudden move from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR), saying it caused confusion and made planning difficult for exporters.
“This change was made without asking the industry. It has shaken our confidence and made financial planning harder,” he said.
