ISLAMABAD: Pakistan’s textile and clothing exports saw a slight increase of 0.93% in FY24, reaching $16.55 billion from $16.50 billion the previous year. This modest growth highlights the sector’s struggle to compete with the regional rivals due to the harsh taxation measures implemented during the fiscal year.

Talking to WealthPK, former commerce minister Gohar Ejaz said the textile and clothing exports remained static over the past two years despite the sector’s $25 billion installed capacity. The government needs to provide competitive energy rates, tax drawbacks, and sales tax refunds to boost exports, he suggested.

“With the new taxation measures, including higher tax rates on the exporters’ income, the sector’s performance in FY24-25 is expected to face further challenges. These impacts will likely become evident in the coming months,” he pointed out.

According to the Pakistan Bureau of Statistics (PBS), the textile and clothing exports saw a 3.91% year-over-year decline in June to $1.41 billion from $1.47 billion. This drop reflects the burden of the highest-ever energy costs on the industry.

Copyright Business Recorder, 2024