KARACHI: Pakistan has sanctioned Rs10 billion ($35.5 million) for its textile and apparel industry and other export sectors to improve cash flows and help manufacturers upgrade technology as the government seeks to make the country’s exports more competitive, the commerce ministry said on Saturday.
The textile sector is the backbone of Pakistan’s exports, accounting for 59.6 percent of total exports during July-March of the last fiscal year, when textile shipments stood at $13.5 billion despite a marginal 0.5 percent decline, according to the Pakistan Economic Survey 2025-26.
“Pleased to share that the Ministry of Commerce has sanctioned Rs. 10,000 million for textiles & apparel and other export sectors under duty drawback and technology upgradation schemes,” Khan said in a post on X.
“I hope this will improve the liquidity of industry and enable them to enhance exports.”
Pakistan has long used duty drawback schemes to reduce the cost burden on exporters by refunding or compensating them for eligible duties, taxes and levies associated with goods they sell overseas.
Technology upgradation schemes, meanwhile, are aimed at encouraging industries to modernize machinery and production processes, helping improve productivity, product quality and international competitiveness.
The government has been seeking to increase exports and improve the competitiveness of Pakistani manufacturers through measures including tariff reforms, trade facilitation and incentives for export-oriented industries.
The commerce ministry said the latest allocation was part of efforts to strengthen export sectors and create conditions for sustainable export growth.
