Key Takeaways
- The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has called on the government to address long-pending policy issues.
- Immediate release of stuck sales tax refunds and DLTL claims is demanded by PRGMEA to improve exporters' cash flow.
- Rising production costs due to electricity, gas, and financing are seen as major threats to competitiveness.
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has urged the government to urgently address long-pending policy issues that threaten the country’s value-added garment exports. In a statement, PRGMEA North Zone Chairman Imran Salahuddin highlighted the urgent need for action, warning that delays are raising production costs and undermining competitiveness.
Salahuddin specifically called for the immediate release of stuck sales tax refunds and DLTL claims, which he said were straining exporters' cash flow. He emphasized that these issues could be resolved quickly if addressed promptly, potentially unlocking billions in additional exports and driving sustainable growth.
The PRGMEA also flagged rising electricity, gas, and financing costs as major threats to competitiveness. These increased expenses are adding to the operational challenges faced by garment manufacturers and exporters. Salahuddin called for a stable, predictable export policy that could attract investment and help mitigate these costs.
Former PRGMEA Chairman Ijaz Khokhar echoed these concerns, warning that global supply chain shifts offered Pakistan fresh opportunities but noted that neighboring countries were outpacing Pakistan through cheaper utilities and stronger incentives. He urged regular consultation with exporters on trade policy to ensure a competitive edge.
PRGMEA stressed the importance of timely action, stating that it could unlock billions in additional exports and drive sustainable, export-led growth. The association believes that addressing these issues could significantly boost Pakistan’s global market share and resilience in the face of international competition.
The calls for immediate policy changes come at a critical time when Pakistan is looking to expand its global market share. Salahuddin highlighted the sector's resilience despite challenges but emphasized the need for urgent action to maintain competitiveness. He stressed that without timely intervention, the benefits of global supply chain shifts could be lost to neighboring countries.
Khokhar’s warning underscores the urgency of the situation. He noted that while Pakistan has opportunities in the changing global landscape, other nations are leveraging their advantages more effectively. Regular consultation with exporters on trade policy is seen as crucial for maintaining competitiveness and ensuring that Pakistan does not fall behind.
The sector remained resilient despite challenges but demanded immediate release of stuck sales tax refunds and DLTL claims, which were straining exporters' cash flow.
Imran Salahuddin, PRGMEA North Zone Chairman
Global supply chain shifts offered Pakistan fresh opportunities, but warned that neighbouring countries were outpacing Pakistan through cheaper utilities and stronger incentives.
Ijaz Khokhar, Former PRGMEA Chairman
