Soaring costs force PHMA to seek export support

Karachi, Pakistan - The Pakistan Hosiery Manufacturers & Exporters Association (PHMA) has called on the federal government to provide temporary export support, warning that rising production costs are threatening export orders, international buyers and Pakistan's market share. At a meeting with the Ministry of Commerce, PHMA Central Chairman Syed Zia Alamdar Hussain urged the government to provide a 6-8 percent Duty Drawback of Local Taxes and Levies (DLTL) on shipments.

This relief would help manufacturers absorb cost increases, retain international buyers and prevent erosion of Pakistan's share in global markets. Hussain highlighted the need for affordable working capital, uniform implementation of the 4.5 percent Export Financing Scheme and the impact of additional provincial holidays on production.

He also pointed to high electricity and gas tariffs, power outages, federal and provincial taxes and levies, energy cross-subsidies, rising labour costs and delayed tax refunds as major cost drivers. Export-oriented industries operate round the clock, but additional holidays disrupt production and increase costs. PHMA identified ocean freight charges and competition from regional sourcing destinations as further weakening Pakistan's competitive position.

The association urged the government to treat the protection of existing export orders as an immediate economic priority, stressing the need for timely policy intervention and targeted cost-relief measures.