Govt issues Rs2.3bn refunds to textile exporters

August 11, 2024 (MLN): Pakistan’s textile sector has received a major boost as the Ministry of Commerce and the Finance Division released Rs2.3 billion in first-quarter Duty Drawback of Taxes (DDT) refunds to eligible exporters, aiming to ease liquidity pressures and sustain export operations.

Khurram Mukhtar Patron-in-Chief of the Pakistan Textile Exporters Association (PTEA), acknowledged the development through his official social media account on X (formerly Twitter) thanking the Ministry of Commerce, Finance Division and the State Bank of Pakistan for their efficient processing.

He expressed hope that the remaining refunds would be cleared promptly and urged other departments to follow suit.

“Grateful to Ministry of Commerce & Finance Division for releasing PKR 2.3B DDT refund as Q1 tranche to eligible textile exporters. Special thanks to Commerce & SBP for efficient processing, easing exporters' liquidity. We hope remaining refunds are cleared soon & other departments follow suit,” Mukhtar posted.

Adding to the conversation Musadaq Zulqarnain Chairman of Interloop Limited shared his strategic outlook on X regarding the potential impact of global trade shifts and tariff adjustments.

He noted that major apparel and home textile retailers are likely to wait for three weeks to assess any resolution before making sourcing decisions.

If additional tariffs of 25% persist, Zulqarnain believes Pakistan stands to benefit significantly in the home textile segment.

“In Home Textile the major beneficiary will be Pakistan. For apparel Bangladesh Vietnam and Pakistan will be the choices in this order. Even if 10–15% moves to Pakistan, it could be 0.5 to 0.75 billion dollars provided Pakistan's manufacturers can be within a few percentage points of Indian prices,” he stated.

Zulqarnain’s remarks stress the importance of price competitiveness and timely policy support in capturing emerging opportunities as global retailers diversify away from traditional sourcing hubs.

Industry stakeholders view the refund release and shifting global dynamics as a dual opportunity to stabilize domestic operations and expand Pakistan’s footprint in international textile markets.

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