FAISALABAD: Mian Farrukh Iqbal, Chairman of the Pakistan Hosiery Manufacturers & Exporters Association (PHMA), North Zone, has urged the federal government to restore the Drawback of Local Taxes and Levies (DLTL) scheme at a uniform rate of 6pc of FOB export value for all eligible exporters, along with an additional 2pc incentive on exports to non-traditional markets.
He observed that Pakistani exporters are already bearing approximately 7.38pc in various taxes and levies on their exports, placing them at a considerable disadvantage against regional competitors. The restoration of DLTL is therefore essential to reduce the cost of doing business, improve export competitiveness and provide much-needed relief to the value-added textile and apparel sector.
Mian Farrukh Iqbal emphasized that the proposed 6pc DLTL should be extended to all eligible exporters without imposing any export growth conditions. Furthermore, an additional 2pc incentive should be provided to exporters exploring non-traditional markets to encourage geographical diversification, develop new international destinations, attract fresh investment and enhance Pakistan’s foreign exchange earnings.
Highlighting the growing regional competition, he pointed out that competing countries are providing substantial fiscal support to their textile and apparel industries. Bangladesh offers a 5pc cash incentive on eligible locally sourced textile exports, an additional 2pc incentive for entering new products or markets, and 3pc support for eligible SME garment exporters, with combined incentives reaching up to 10pc for qualifying exporters. Similarly, India’s Remission of State and Central Taxes and Levies (RoSCTL) provides rebates ranging from approximately 4.9pc to 6.05pc on various apparel products and up to 8.2pc on eligible made-up products.
He said that these incentives provide regional competitors with a significant advantage in international markets, while Pakistani exporters continue to face high energy costs, taxation, expensive financing and increasing production expenses.
Commenting on the recently announced Performance-Based Rebate on Incremental Exports (PRIE), Mian Farrukh Iqbal noted that the scheme provides a 1pc rebate on incremental export value for exporters achieving growth of up to 10pc, while a 2pc rebate is available to those achieving growth above 10pc.
However, he expressed concern that linking incentives exclusively with export growth may exclude a substantial segment of the industry, particularly at a time when Pakistan’s exports are facing declining trends and exporters are struggling to recover lost orders and maintain their existing international business. He stressed that the industry requires a broad-based incentive mechanism that supports all eligible exporters, rather than restricting benefits to businesses already achieving export growth. Such a policy would help revive existing export operations, encourage new investments, generate additional employment and create opportunities for expanding Pakistan’s share in global markets.
The PHMA NZ Chairman further emphasized that the textile and apparel industry requires a stable, predictable and long-term policy framework to enable exporters to undertake investment decisions, enhance production capacities, introduce new products and secure long-term international orders.
He urged the Federal Government to announce the restoration of 6pc DLTL for all eligible exporters, together with an additional 2pc incentive for exports to non-traditional markets, for a period of five years commencing from FY 2026-27.
He concluded that a consistent and competitive export incentive policy is essential not only for the survival and sustainable growth of the value-added textile sector but also for increasing foreign exchange earnings, generating employment and strengthening Pakistan’s overall economy.
Copyright Business Recorder, 2026
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