Goods export: PTEA cautions govt about steep decline

Business Recorder reported that Khurram Mukhtar, patron-in-chief of the Pakistan Textile Exporters Association (PTEA), has warned the government about a steep drop in goods exports during the second quarter of FY27. He said weak buyer demand in Western markets, driven by high inflation, and sea freight charges that had risen 1.5 to 2.5 times were squeezing already thin margins. Higher input and logistics costs also make Pakistani products less competitive abroad, and he called the drop in export volume unprecedented.

Mukhtar argued that exporters drive the textile chain, so any slowdown hits every stage from ginning to knitting. He asked for a temporary Drawback of Local Taxes and Levies (DLTL) of 6-8 percent, faster refunds and an end to energy tariff cross-subsidies. He also flagged anomalies in the Export Finance Scheme, saying the 4.5 percent rate announced in the FY27 Finance Bill has not been implemented, while banks charge at least 5.5 percent and some up to 8.5 percent.

Around Rs200 billion was extended to yarn exporters despite yarn being on the scheme's negative list, while eligible exporters with performance five to six times the SBP requirement were not allocated funds. Mukhtar proposed a Rs140 billion package for ginning, sizing, weaving and processing to fund balancing, modernisation and replacement (BMR), and urged the Ministry of Commerce, the Ministry of Finance and the SBP to implement the announced EFS rate.