By SKM
October 1, 2026
ISLAMABAD: Pakistan’s textile industry could generate an additional $3 billion in exports this year and expand shipments by $10 billion over the next two to three years, newly elected All Pakistan Textile Mills Association (APTMA) Chairman Asad Shafi has said, making competitive energy prices, lower financing costs and timely tax refunds central to the industry’s growth agenda.
In his first statement after assuming charge, Shafi called for a coordinated government-industry strategy to unlock the country’s textile export potential, attract fresh investment and move Pakistani businesses further up the global value chain.
He said Pakistan already had a complete textile manufacturing chain, from fibre and spinning to weaving, processing, garments and home textiles, giving the country an established industrial base to expand exports without starting from scratch.
However, realizing the additional export potential would require a more competitive and predictable business environment, alongside policies that encourage investment in higher-value products and international market expansion.
Shafi said more than 80 per cent of Pakistan’s textile exports already consisted of value-added consumer products, including apparel and home textiles. The next phase, he added, should focus on capturing a greater share of the value generated beyond manufacturing.
Manufacturing typically accounts for less than 30 per cent of an apparel product’s final retail value, according to the APTMA chairman, who argued that Pakistani exporters needed to expand into product design, branding, marketing, distribution and retail to tap this additional value.
“We should not only manufacture a product in Pakistan; we should increasingly design it, brand it, market it and sell it internationally as well,” Shafi said.
To support this transition, APTMA is expanding its membership to include major Pakistani textile and apparel brands and retailers, bringing manufacturers and businesses involved in downstream commercial activities onto a common platform.
Shafi said stronger links between manufacturers and brands could help existing Pakistani labels expand internationally while enabling manufacturers to establish their own brands and overseas distribution networks.
He urged the government to ease foreign exchange and regulatory restrictions that limit investment in overseas warehousing, distribution, marketing and retail operations. He also called for a supportive framework for e-commerce and retail-oriented shipments from Pakistan.
Energy, financing costs under spotlight
The APTMA chairman identified high operating costs and liquidity constraints as major issues requiring government intervention if the industry is to compete with regional textile exporters.
He called for industrial electricity at 7 US cents per kilowatt-hour, gas at $7 per million British thermal units (MMBtu), and financing at 7 per cent annually, arguing that competitive input costs were essential for attracting investment and expanding exports.
He also demanded the restoration of Drawback of Local Taxes and Levies (DLTL) support and the prompt settlement of outstanding sales tax, income tax and other government refunds to ease exporters’ cash-flow pressures.
Shafi said Pakistan’s textile sector had spent decades building manufacturing expertise, developing a skilled workforce and establishing relationships with international buyers. The country also had significant installed capacity across the supply chain that could be utilized more effectively.
With competitive energy prices, affordable financing, adequate liquidity and policies supporting investment and overseas expansion, he said, the industry could increase exports in the near term while undertaking further investment to sustain growth.
Shafi said APTMA would work with the government to develop a practical roadmap for expanding exports, strengthening the domestic textile value chain, attracting investment and increasing the global presence of Pakistani textile manufacturers and brands.
The proposed export expansion, however, will depend on whether the government and industry can address the cost, financing and regulatory constraints identified by the association and translate the sector’s existing capacity into additional international sales. Ends
