Exporters warn budget measures threaten $11bn value-added sector

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LAHORE: Pakistan’s $ 11 billion worth of export industry-which has contributed nearly one-third of the country’s total exports-has issued an immediate appeal to Prime Minister Shahbaz Sharif, warning that the recent budget measures are at risk of removing the sector at a critical juncture.

In a joint statement, Pakistan Ready Made Garments Manufacturers and Exporters Association (PRGMEA), which includes PHMA, SMP, PGMEA, PGMEA, PGMEA, PGMEA, PCSUMEA, and Silkot Chamber of Commerce (Freedom of Commerce). (EFS) to its original structure.

The appeal was supported by industry leaders, including Prajimia Chairperson Dr. Mohammad Ayazuddin. Former Central Chairperson of Pragmaia Sohail is a Sheikh. Sialkot Chamber of Commerce and Industry President (SCCI) Ikramul Haq; Chairperson of PSGMEA Khawaja Masood Akhtar – whose company’s football is used in the FIFA World Cup tournament. Chairperson of Smip Zeeshan Tariq, Plugmeya Chairperson Syed Ishtam Mazar; Chairperson of PHMA Abdul Hameed; Fama Khoja’s former chairperson of Musharraf; Chairperson of PGMEA Anas Rachel Barlas; Chairperson of PCSomia Mohammad Jamal Bhatta, as well as Majid Bhatta, Ansar Aziz Puri, Sheikh Lokman Amin and other prominent exporters.

He expressed serious concern that despite the government’s rhetoric around the “export -led development”, practical steps are rare. “The government claims to support exports permanently, but in fact, no department is associated with this purpose,” he said.

He noted that during the entire budget speech, the Finance Minister only mentioned the word “export” once – and in the negative context, he also declared duties on import yarn under the EFS.

Addressing the Prime Minister directly, the joint statement called on the Prime Minister to “intervene without delay.

He warned that in the current policy environment, the government’s “Uran Pakistan” vision to increase exports to 100 billion is unacceptable.

Exporters clarified: “We are not looking for subsidies, discounts or special behavior – just one level playground to compete globally. Current policies have significantly increased the cost of doing business and has made business easily.”

He called for immediate action to regenerate industry trust and smooth the procedure. “International buyers are demanding long-term explanation and consistency in the EFS framework. Pakistan is in position to take advantage of global changes far away from China with a strategy-this opportunity should not be wasted.”

He said that the elimination of FTR and the breakdown of the EFS has put the industry in disrepair. The FTR, once a simple and prediction tax procedure, has been delayed in place burdensome procedures, audits and refunds-in particular, small and medium-sized exporters are damaged.

Meanwhile, EFS – was previously essential for import of raw materials that were not locally manufactured or did not need international buyers from designated suppliers – it has had the burden of excessive conditions, which restricted access to critical inputs and damaging exports.

Business leaders emphasized that Pakistan must move beyond cotton dependence and accept diverse, innovation approach for exports of value added costumes.

“When we have international buyers waiting, we do not have time for bureaucratic delays,” he said. He warned that orders to cancel its results, factory closures and massive job losses would be canceled.

Exporters reiterated that the restoration of the original FTR and EFS mechanism would not cost the government on anything, but would directly strengthen exports and increase the arrival of foreign exchange. “It’s not just about survival – it’s about Pakistan’s economic stability. We are united and ready to cooperate, but we need immediate and decisive action from the government.”

“Pakistan stands at a crossroads. With proper support of the policy, our exporters can create growth, employment and stability. But time is over – and the loss has already begun.”