Textile Mills & FibersTKT-AE79
Pakistan textile sector presses for tax relief, cheaper power to lift exports
Pakistan's textile industry is pressing Islamabad for lower taxes and cheaper energy to revive exports, a demand with direct pricing implications for yarn, fabric and home-textile buyers.
- Cut
- September 27, 2026
- Sew
- 2 min
- Ticket
- TKT-AE79

Construction
Pakistan's textile industry has asked the government for lower taxes and cheaper energy to boost exports, INP reports.
No specific industry body, tax measure, or government response is identified in the report.
The request targets the cost base of Pakistan's largest export-manufacturing sector, spanning yarn, fabric and home textiles.
Pakistan's textile industry has called on the government to lower taxes and cut energy costs as it seeks to restore export growth, Independent News Pakistan (INP) reports.
The demand comes from the country's largest export-manufacturing sector, which has long identified electricity and gas tariffs as the single biggest cost disadvantage it faces against regional competitors. Industry representatives making the appeal did not announce specific new buyer commitments or order figures alongside the request, which remains a policy ask rather than a confirmed commercial development.
The intervention matters for sourcing teams tracking Pakistan as a supplier market. The country is a significant producer of cotton yarn, greige and finished fabrics, home textiles and knitwear, supplying European and US brands across the apparel and household-textile tiers. Any shift in the cost base of Pakistani mills feeds directly into quoted prices for yarn, fabric and finished goods in the next buying cycle.
The industry's framing — lower taxes plus cheaper energy — mirrors the two levers Pakistani manufacturers have repeatedly cited when order volumes shift to Bangladesh, India and Vietnam. Energy tariffs in Pakistan are set through government-regulated pricing, and regional tariff disparities have been a recurring point of dispute between mill operators and Islamabad in recent years. INP's report does not specify which industry body lodged the latest request or the exact tax measures targeted, and no government response is confirmed in the report.
For buyers, the unanswered question is whether the appeal translates into policy. Previous government energy-support packages for export industries have been announced and later withdrawn or litigated, and mills have at times operated on interim tariff arrangements while regulators settled disputes. A credible, durable reduction in energy input costs would strengthen the price position of Pakistani spinners and converters; inaction would leave existing cost structures in place for the coming season.
Sourcing directors with Pakistani programmes should treat this as a policy-watch item, not a price signal yet. The decision it forces is contractual: whether to hold current pricing assumptions for Pakistani fabric and home-textile orders through the next negotiation round, or to build in contingency clauses tied to any announced change in energy tariffs or taxation affecting mill input costs.
via Google News: Textile industry (Source)
More from Grace Kim
Show full bio
Correspondent covering marketplaces and e-commerce at Softgoods Report.
100 articles