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Pakistan’s export sector at crossroads

16 0
14.06.2025

That Pakistan’s exporters are at a crossroads is a fact. If we are to revive economic momentum and restore our competitive advantage in global trade, there are crucial policy changes needed. The textile sector, especially towel producers, is a key driver of exports, but all-too-sustained challenges risk derailing its promise.

One of the most significant issues remains the overly high tax rates imposed on exporters. Policymakers have long recognized reform as a necessity, yet action has been slow. Making taxes rational—at least incrementally—can bring much-needed relief and facilitate cash flow for nascent exporters, driving innovation and expansion into markets.

The other high-priority task is to further enhance the Export Facilitation Scheme. Open audits and targeted supervision will establish trustworthiness and effectiveness in export activities, whereas reinstating GST zero-rating for local supplies to exporters can remove unnecessary financial pressure. It’s an easy yet effective idea that........

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