APTMA warns Pakistan losing edge in global textile trade

December 23, 2025 (MLN): The chairman of the All Pakistan Textile Mills Association (APTMA), Kamran Irshad, warned that Pakistan’s textile sector is facing serious challenges despite positive government economic indicators. 

Speaking on a private news channel, he highlighted that while official numbers look promising on paper, the real impact on jobs, industrial competitiveness, and trade balance tells a different story.

Irshad noted that Pakistan’s exports have fallen by 6%, while imports surged by 13% from July to November, leading to a staggering trade deficit of $15.4bn. 

The numbers don’t show the real situation on the ground, he said, stressing that the government’s focus on tax collection and remittances does not offset the industrial slowdown.

The APTMA chairman highlighted that the textile sector could potentially increase exports from $17.8bn to $25–30bn if four critical issues electricity, gas, interest rates, and taxation are addressed. 

The sector has the capacity and hard-working workforce, but policy bottlenecks are blocking growth, he added.

Kamran Irshad also expressed concerns over the IMF program conditions, which he said are squeezing both industry and the salaried class. 

If the economy is not stabilized within the next two years, the next IMF program will hit harder. Urgent reforms are needed.

High electricity and gas costs remain a critical challenge for Pakistan’s textile industry. 

Despite promises of cheap energy, many units are struggling to compete globally, resulting in shutdowns and ongoing capital flight.

Irshad warned, makes Pakistan a less attractive destination for investors compared to regional hubs like Dubai.

The imbalance between imports and exports also poses risks. 

Pakistan, an agricultural country, is importing over $10bn worth of food, while domestic cotton shortages further increase textile sector dependency. 

Additionally, the Export Facilitation Scheme (EFS), intended to boost exports, has reportedly been misused. 

According to Irshad, imports such as yarn and scrap metal are being consumed domestically without GST, leading to massive tax evasion and trade distortions.

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