By, FARHAT MANZOOM
KARACHI: The Pakistan Hosiery Manufacturers & Exporters Association (PHMA) Central Chairman Syed Zia Alamdar Hussain in the consultative meeting convened by Federal Ministry of Commerce to sustain Apparel & Textile Exports urged the Federal Government to take immediate and targeted measures to address the mounting challenges confronting Pakistan’s hosiery, knitwear and apparel export industry. PHMA has warned that escalating production costs, rising freight charges, high energy tariffs, taxation pressures and liquidity constraints are undermining the sector’s international competitiveness and threatening existing export orders.
Syed Zia Alamdar Hussain, Central Chairman PHMA urged the Ministry of Commerce to identify practical, coordinated measures to ease the cost burden on exporters and protect Pakistan’s export markets. He strongly recommended to consider and provide immediate relief, PHMA has proposed temporary Duty and Tax Remission for Exports (DLTL) support of 6–8% of the Free on Board (FOB) value on a shipment basis for a limited period. The proposed intervention would help exporters manage exceptional cost increases, retain existing international buyers, protect ongoing orders and prevent further erosion of Pakistan’s market share.
The Chairman also emphasized the urgent need to address working-capital constraints, as exporters must finance raw materials, labour and production expenses well before receiving export proceeds. PHMA has urged the authorities to ensure uniform implementation of the announced 4.5% Export Financing Scheme (EFS) end-user rate, applicable until June 2027, noting that some exporters continue to face higher financing costs despite the announced relief. He also expressed concern over levies abruptly imposed by the Government which cannot be exported and add additional burden in the manufacturing cost.
Chairman PHMA highlighted that provincial holidays also affect the export production as the Export-Oriented Industry operated 24/7 365 days to complete the export orders without holidays. Provincial holidays affect the export-production and incur to additional cost to pay workforce. He voiced that the Export is the Federal subject and export oriented be allowed to follow the federal gazette holidays only. Expressing concern that some members export industries had intimated layoff in the wake of historic highest cost of export production which has turned the industries towards unviability.
Highlighting the severity of the situation, the PHMA Chairman stated that high electricity and gas tariffs, power outages, federal and provincial taxes and levies, energy cross-subsidies, increasing labour costs, delayed tax refunds and rising regulatory compliance expenses have significantly increased manufacturing costs. The substantial rise in ocean freight charges has further weakened Pakistan’s competitive position, with rates to certain major destinations increasing by 1.5 to 2.5 times. Exporters are increasingly compelled to absorb these additional costs at the expense of already narrow margins or pass them on to international buyers, making Pakistani products less competitive against regional sourcing destinations.
Expressing concern over intensifying competition from regional sourcing countries, PHMA stressed that international buyers increasingly evaluate sourcing destinations on cost competitiveness, reliability, delivery timelines and the overall business environment. Once buyers shift their orders to competing countries, regaining that business can be extremely difficult.
PHMA has therefore urged the Government to treat the preservation of existing export orders and international buyers as an immediate economic priority. Timely policy intervention, affordable export financing and targeted cost-relief measures are essential to sustain Pakistan’s hosiery and knitwear exports, protect employment and strengthen the country’s position in global markets.
PHMA Calls for Urgent Government Action to Restore Export Competitiveness Amid Soaring Production Costs.
