Long-Term Policy Essential for Sustained Export Recovery, Says PRGMEA

By Muhammad Shahzad | Lahore, Pakistan
LAHORE: The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has welcomed Prime Minister Shehbaz Sharif’s recently announced support package for the industrial sector, calling it a positive step toward stabilizing the export industry.
However, PRGMEA North Chairman Dr. Ayyazuddin emphasized that the relief measures will only be effective if accompanied by a long-term, predictable export policy.
The Prime Minister’s package, announced at the PM Office in Islamabad, includes a reduction of 300 basis points in the export refinance rate (bringing it down to 4.5 percent) and a reduction of Rs 4.04 per unit in industrial electricity tariffs. Dr. Ayyazuddin described these measures as a “much-needed morale booster” for exporters facing rising production costs and liquidity constraints.
“The garment sector has endured exceptionally challenging conditions due to high energy prices, costly financing, and global competition,” he said. “While the government’s package eases immediate pressures, sustainable growth requires long-term stability and policy clarity.”
Dr. Ayyazuddin highlighted structural challenges in the industry, including frequent changes in tax policies and inconsistent export facilitation schemes, which discourage new investment. He stressed the need to move from low-value exports to value-added garments and diversify product lines, while investing in modern machinery, technology upgrades, and workforce training.
He added that delays in export refunds and complex documentation procedures remain major obstacles, particularly for small and medium enterprises. “Streamlined processes, reduced bureaucracy, and timely release of incentives are essential to improve liquidity and encourage growth,” he said.
Concluding, Dr. Ayyazuddin said, “The Prime Minister’s package is a welcome start, but the real test will be whether it ensures long-term stability, fosters innovation, and drives meaningful export growth.”