By SKM
April 24, 2026
KARACHI: Pakistan’s textile industry has urged the State Bank of Pakistan (SBP) to enhance export refinance facilities, warning that rising energy costs, supply chain disruptions, and geopolitical uncertainty are tightening liquidity conditions for exporters and threatening growth in the country’s key export sector.
In a letter to SBP Governor Jameel Ahmad, All Pakistan Textile Mills Association (APTMA) Chairman Kamran Arshad said the textile industry remains the backbone of the economy, contributing around 60% of total exports, 8.5% of GDP, and 40% of manufacturing sector employment.
He said the sector, the country’s largest foreign exchange earner, is currently under severe working capital pressure due to a combination of factors, including elevated energy prices, logistical disruptions, and uncertainty linked to geopolitical developments in the Middle East, along with ongoing domestic economic challenges.
Arshad noted that these pressures are increasing production costs and eroding export competitiveness, while also constraining industrial output at a time when Pakistan’s external account remains under stress.
He stressed the urgent need for improved and timely access to financing for exporters, arguing that an expansion in export refinance facilities would help textile mills manage liquidity constraints, sustain production, and meet international export commitments without disruption.
APTMA said strengthening the refinance mechanism would help the industry navigate current economic headwinds and support Pakistan’s position in global markets. It added that improved liquidity support could contribute to higher export earnings and broader macroeconomic stability.
The association expressed hope that the central bank would give the request due consideration, given the sector’s critical role in sustaining foreign exchange inflows amid an increasingly uncertain global economic environment. Ends
