Pakistan’s hosiery and knitwear exporters are seeking urgent government support as rising production, energy and freight costs threaten international competitiveness….reports Asian Lite News Desk
Pakistan’s hosiery and knitwear export industry is facing growing pressure from rising production costs, high freight rates, delayed tax refunds and increasing regulatory expenses, threatening the sector’s competitiveness in international markets.
The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has urged the federal government to take immediate measures to protect export orders and prevent further erosion of Pakistan’s position in global apparel markets.
PHMA Central Chairman Zia Alamdar Hussain made the appeal in a letter to the federal secretary of commerce, calling for an urgent consultative meeting involving representatives of the association and officials from the Ministry of Finance, State Bank of Pakistan, Federal Board of Revenue and other relevant institutions.
The proposed meeting would examine the challenges facing the industry and identify practical measures to support exporters and maintain their competitiveness in international markets.
The sector is dealing with a combination of higher manufacturing costs, expensive freight, electricity shortages, increased energy tariffs, heavy taxation and liquidity constraints. At the same time, Pakistani exporters are facing stronger competition from regional producers.
Weak demand in international markets has added to the pressure, making it increasingly difficult for manufacturers to secure new orders while retaining existing overseas buyers.
According to The Express Tribune, the increase in ocean freight has emerged as another major challenge for the industry. PHMA said shipping costs to several key international destinations had increased by between 1.5 and 2.5 times, adding significantly to the final landed cost of Pakistani products.
The rise in transportation expenses has left exporters facing difficult choices. They can either absorb the additional costs and accept lower profit margins or pass the increase on to international buyers, potentially making Pakistani products less competitive compared with goods from rival exporting countries.
The association has therefore called on the government to provide temporary relief from the sharp increase in production, energy and transportation costs.
Among its proposals is a temporary Duty Drawback on Local Taxes and Levies (DLTL) incentive of between 6 per cent and 8 per cent of the Free on Board value. PHMA has proposed that the incentive be calculated on a shipment basis and introduced for a limited period.
The association has argued that such measures could help exporters manage the immediate cost pressures and protect existing international orders while maintaining Pakistan’s presence in global apparel markets.
The industry’s concerns come as exporters continue to face liquidity pressures linked to delayed tax refunds and rising operating expenses. Increased regulatory costs have further added to the financial burden on manufacturers.
PHMA has called for government departments and industry representatives to work together on measures that can address the sector’s immediate difficulties and strengthen its ability to compete internationally.
The proposed consultations would involve key economic and financial institutions, with the aim of developing measures that could provide relief to exporters while supporting the wider export sector.
The hosiery and knitwear industry is a significant part of Pakistan’s apparel export sector, and PHMA has warned that continued cost increases and weaker international demand could further affect the industry’s ability to secure and retain overseas business.
