The measures were designed to ease exporters’ financial burdens while helping manufacturers modernize production, strengthen competitiveness and expand their presence in international markets
By S.M. Inam
KARACHI: Pakistan has sanctioned Rs10 billion, or about $35.5 million, for the textile and apparel industry and other export-oriented sectors as the government seeks to improve industrial competitiveness, strengthen cash flows and encourage investment in modern technology.
The Ministry of Commerce said the allocation had been approved under duty drawback and technology upgradation schemes. The measures were aimed at easing financial pressure on exporters while helping manufacturers modernize production facilities and improve their ability to compete in international markets.
The textile industry remained the backbone of Pakistan’s export economy. According to the Pakistan Economic Survey 2025-26, textile products accounted for 59.6% of the country’s total exports during July-March of the last fiscal year. Textile exports stood at $13.5 billion during the period, despite recording a marginal decline of 0.5%.
Commerce ministry officials said the latest allocation was intended to address some of the financial and technological constraints faced by export-oriented industries.
Commerce Minister Jam Kamal Khan said the ministry had sanctioned Rs10 billion for textiles and apparel and other export sectors under the two schemes. He expressed hope that the move would improve liquidity in the industrial sector and enable exporters to expand their overseas shipments.
Duty drawback schemes have long been used by Pakistan to reduce the cost burden on exporters. Under such arrangements, eligible duties, taxes and other levies associated with exported goods are refunded or compensated, helping manufacturers manage production costs.
Technology upgradation schemes, meanwhile, are designed to encourage industries to replace outdated machinery and improve production processes. Better technology can help manufacturers raise productivity, improve quality and develop products that meet international standards.
The government has been seeking to strengthen exports through tariff reforms, trade facilitation and incentives for export-oriented industries. Officials have argued that improving competitiveness was essential for securing sustained growth in foreign exchange earnings.
The latest allocation was therefore intended not only to provide immediate financial relief but also to support longer-term industrial modernization. The commerce ministry said the measure formed part of broader efforts to strengthen Pakistan’s export sectors and create conditions for more sustainable growth in overseas sales.
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