Apparel sector calls for PM’s urgent intervention on tariff barriers
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In this photograph, women employees are working at a garment factory on April 13, 2023. — AFP
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LAHORE: The costume sector, which supports more than 9 billion in export revenue, has warned that due to continuous tariff obstacles and sanctions policies, the country’s value -added textile industry has been hitting a serious blow to the supply chains.
In a joint letter to the Prime Minister for timely intervention, the Pakistan Ready Med Garments Manufacturers and Exporters Association (PRGMEA) and Pakistan Hossey Manufacturers and Exporters Association (PHMA) have stated that the global buyers are no longer available in Pakistan. Nevertheless, importing such essential raw materials is due to duties and outdated regulations.
Prajimia’s Regional Chairman Dr Ayazuddin and PHMA Zonal Chairman Abdul Hameed tried jointly and quickly with the Prime Minister before the budget, and warned that without immediate intervention, Pakistan was opening up fresh opportunities for new exporters.
He emphasized that Pakistan still relies heavily on cotton-based exports-as a result, about 80 % of the global costume trade has moved toward artificial and active textiles. The letter states, “If we do not have the right raw material, we cannot extend or diversify.”
“We are being fined for importing items that are not locally ready.”
It was pointed out that human-made fibers, technical yarn, performance clothes, and critical trimming-which have been classified under many HS chapters 54, 55, and 96, are subject to duties despite not being ready in the country. He added, “Keeping taxes on non -available raw materials is like taxing exports before they are.”
Former Prajimia chairman, the ingredients, and Sajid Saleem Minhas, have supported the joint demand that SMEs are particularly weak due to strict policies and lack of flexibility in global compliance. Khokar said, “We have sent a detailed letter to Prime Minister Shahbaz Sharif and the Ministry of Commerce stating that some changes to the recent policy, such as the Export Facility Scheme (EFS), are restricting the input period from 60 to 9 months, are unrealistic to the costume sector.”
Former Chairman of Pragmaia, Ijaz Khohar added that the letter addressed the Prime Minister as well as the Minister of Commerce Jam Kamal, strongly criticized the sudden change in EFS timelines. He argued that value -added exporters often work under timely and sometimes stock business models, which requires a long input cycle to meet diverse orders. He said that existing restrictions will disrupt operations for exporters and increase compliance burden.
Sajid Saleem Minhas said the local spinning industry has not been ready to meet the needs of today’s global fashion market. “Since we do not manufacture the material demanding our buyers, we should at least allow their duty -free imports,” he said. Otherwise, we are closing ourselves with the category of high growth products. “
Members of PRGMEA and PHMA also demanded the restoration of the final tax regime (FTR) for exporters, stating that the change in the general tax government has disrupted complex audits and business continuity. “We need simplicity and belief, no additional paperwork and examination,” the statement said.
Khokhar also expressed concern over the lack of government pressure on trade diplomacy, especially with the United States, where Pakistani textiles face 29 % of import tariffs, compared to lower rates of rivals such as Bangladesh and Vietnam.
The letter states that Pakistan talks with the United States for preferential terms or targeted tariff relief, especially for environmentally friendly and sustainable products that are compatible with global ESG. The delay in the refund was also highlighted as a chronic problem. Exporters are facing severe liquidity shortages due to delays in preventing DLTL, DDT, sales tax, and tax return. The industry has requested automated and time -bound mechanisms for processing refunds to reduce working capital barriers.
In addition, the two associations emphasized the need for a strong national marketing campaign for “Med in Pakistan” clothing. He called on the Ministry of Commerce to target embassies, digital platforms, and B2B events to increase the contribution and improve the brand image.
He said that the sector has the ability to double its exports in five years and added that “we need the government to remove these structural road blocks first”.
Sajid Minhas said that Pakistan’s value -added textile sector is the biggest employers and important partners in national exports. The country does not afford to lose this opportunity. “We request the Prime Minister to meet us immediately and align the policy with the facts of the global market.”
