Textile sector submits budget proposals to finance minister

ISLAMABAD: Finance Minister Senator Muhammad Aurangzeb on Tuesday met a high-level delegation from Pakistan’s textile and apparel industry, which presented a detailed set of proposals for the federal budget for 2026-27, according to an official statement.

The delegation told the minister that the textile sector remained central to the country’s exports, employment and foreign exchange earnings. It said the industry required a stable and growth-oriented policy framework to respond to changing global market conditions and rising competition from regional economies.

According to the statement, the proposals covered a wide range of issues, including tax reforms, affordable energy, export facilitation, industrial modernisation, liquidity management, investment promotion and measures to improve the ease of doing business.

Industry representatives said timely policy support would help improve export competitiveness, encourage value-added manufacturing and bring in new investment. They also called for faster and more efficient refund systems, rationalised energy pricing, greater facilitation for exporters and a lower compliance burden.

Government seeks continued consultation

The finance minister welcomed the sector’s engagement in the budget process and reiterated the government’s commitment to maintaining regular consultations through the Tax Policy Office, the statement said.

Aurangzeb also spoke about the government’s ongoing push for transparency and documentation through digital monitoring systems. He said such systems had already been introduced across the sugar, cement, beverages and tobacco sectors, including in units owned by the prime minister’s family.

During the meeting, the minister invited the textile industry to cooperate in extending similar digital monitoring arrangements to its own sector.

The meeting formed part of the government’s broader engagement with key economic sectors ahead of the preparation of the next federal budget. The textile and apparel industry used the discussion to press for policy measures it said were necessary to strengthen competitiveness and support export-led growth.

The official statement said the exchange focused on creating conditions that would help the sector navigate external pressures while sustaining its contribution to the national economy. The industry delegation emphasised that policy consistency and cost rationalisation would be important for maintaining momentum in exports and investment.

The statement did not provide further details about the composition of the delegation or specific revenue measures under consideration, but said both sides agreed to remain engaged on the proposals presented during the meeting.