Qudsia Bano

To boost Pakistan’s export-driven economy, Federal Finance and Revenue Minister Senator Muhammad Aurangzeb has reaffirmed the government’s commitment to supporting a sustained growth of the thriving towel industry.

Chairing a high-profile meeting of the prime minister’s special committee on the towel industry’s concerns, the minister engaged with key stakeholders to address the sector’s pressing challenges and explore avenues for enhancing its global competitiveness. Key officials and industry representatives highlighted Pakistan’s position as the world’s third-largest towel exporter. The industry generates $1.77 billion annually, exports to 125 countries, and employs around 2.8 million workers, with the US and Europe as the major markets.

In an exclusive chat with WealthPK, senior economist at PRIDE Consulting (Pvt) Limited Dr. Lubna highlighted the resilience and stable export growth of Pakistan’s towel industry, which is driven by high-quality textiles and global demand. She raised concern over the taxation policies, emphasizing that inconsistencies hindered long-term planning and competitiveness. She urged stable tax reforms, warning that fluctuating policies deterred foreign buyers and disrupted exports.

Dr. Lubna explained, “A predictable tax structure would provide the exporters with the confidence to expand operations, attract foreign investment, and explore new markets.” “The government is fully committed to ensuring sustained expansion of exports, and our policies will reflect this collaborative approach,” she said. She stressed the importance of fostering innovation and modernizing the sector to maintain its competitive edge. “We must focus on technological upgrades, skill development, and easing regulatory hurdles to ensure long-term sustainability,” she added.

The meeting concluded with a commitment to strengthening public-private partnerships, ensuring policy continuity, and exploring incentives to enhance Pakistan’s standing in the global textile market. With exports playing a vital role in the country’s economic stability, the stakeholders agreed that immediate action on taxation and policy reforms could significantly elevate Pakistan’s share in the global textile sector. As Pakistan continues to navigate economic challenges, ensuring competitiveness of its high-performing industries like the towel sector remains paramount for sustainable growth.

Credit: INP-WealthPk