KARACHI: Pakistan has approved Rs10 billion ($35.5 million) for the textile and apparel industry and other export-oriented sectors to improve manufacturers’ liquidity and support technological upgrades aimed at strengthening the country’s export competitiveness.
The Ministry of Commerce said on Saturday that the funds had been sanctioned under duty drawback and technology upgradation schemes, which are designed to reduce the financial burden on exporters and encourage investment in modern production facilities.
Commerce Minister Jam Kamal Khan announced the allocation in a post on X, saying the initiative was expected to improve the liquidity position of industries and help them expand exports.
The textile and apparel sector is expected to be a major beneficiary of the allocation. The industry remains the backbone of Pakistan’s merchandise exports, accounting for around 59.6 per cent of total exports during the July-March period of the last fiscal year, according to the Pakistan Economic Survey 2025-26.
Textile exports stood at approximately $13.5 billion during the period, despite recording a marginal decline of 0.5 per cent compared with the corresponding period.
Under duty drawback arrangements, exporters can receive refunds or compensation for eligible duties, taxes and other levies incurred in connection with goods shipped to international markets.
The mechanism is intended to lower production costs and improve the price competitiveness of Pakistani products abroad.
The technology upgradation component, meanwhile, is aimed at encouraging manufacturers to replace outdated machinery, modernise production systems and adopt more efficient technologies. Such investments can help improve productivity, product quality and compliance with international standards.
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The latest allocation comes as the government seeks to expand Pakistan’s export base and improve the competitiveness of domestic manufacturers through a combination of tariff reforms, trade facilitation measures and incentives for export-oriented industries.
The Commerce Ministry said the Rs10 billion allocation formed part of broader efforts to strengthen key export sectors and create an environment conducive to sustained growth in overseas sales.
Industry officials have long identified limited access to working capital, high production costs and outdated technology as major constraints on the competitiveness of Pakistani exporters. The latest measures are therefore expected to provide some financial relief while enabling businesses to invest in production capacity and technological improvements.
The government hopes that improved liquidity and modernisation of industrial units will enable exporters to increase production, improve quality and compete more effectively in international markets, ultimately supporting higher and more sustainable export earnings.
