KARACHI: The Pakistan Hosiery Manufacturers & Exporters Association (PHMA) has urged the government to introduce immediate taxation reforms and export-oriented policy measures in the Federal Budget 2026-27 to revive the economy, strengthen exports and improve industrial competitiveness.
In a communication addressed to Senator Saleem Mandviwalla, chairperson of the Senate Standing Committee on Finance and Revenue, PHMA Patron-in-Chief Muhammad Jawed Bilwani highlighted a series of proposals presented during the Senate Secretariat’s pre-budget meeting.
The PHMA said Pakistan’s value-added textile sector remained the backbone of the country’s exports, contributing approximately $17.1 billion during FY2024-25 and accounting for nearly 96 per cent of total textile exports.
The association called for the restoration of the fixed/final tax regime (FTR) for exporters with a 1.0 per cent turnover tax, as well as the abolition of super tax on exports. It also demanded the reinstatement of the Export Facilitation Scheme (EFS) in its original form introduced under SRO-957(I)/2021.
Among its key recommendations, the PHMA urged the government to announce a comprehensive export package featuring regionally competitive energy tariffs, including electricity at 8 cents per kilowatt-hour and gas at $7 per MMBTU for export industries.
The association further demanded the restoration of the Duty Drawback on Local Taxes and Levies (DLTL) at 5.0 per cent on value-added exports, along with an additional 2.0 per cent incentive for exporters achieving at least 10 per cent annual export growth.
The PHMA also proposed replacing EOBI and provincial social security contributions with a simplified labour welfare contribution mechanism similar to that of Bangladesh, under which exporters would contribute 0.03 per cent of export proceeds directly towards labour welfare and social compliance.
The association warned that emerging global challenges could severely impact Pakistan’s exports and remittances. According to the PHMA, Gulf countries have started revising their policies towards Pakistan amid regional tensions, which could negatively affect workers’ remittances estimated at around $21 billion annually.
The association also called on the Federal Board of Revenue (FBR) to focus on broadening the tax base and improving the tax-to-GDP ratio rather than increasing the burden on compliant taxpayers.
