The All Pakistan Textile Mills Association (APTMA) has issued a strong warning about growing threats to Pakistan’s textile and apparel exports, particularly in the crucial US market.
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In a letter to Federal Minister for Commerce Jam Kamal Khan, APTMA urged the government to urgently engage with US authorities to secure preferential market access.
The association highlighted recent trade shifts favoring competitors, which could erode Pakistan’s export share in its largest market.
Competitive Disadvantages Emerge
Major rivals have gained better terms in the US.
India now faces an 18% tariff, slightly lower than Pakistan’s approximately 19%. The EU-India free trade agreement further strengthens India’s position.
Most critically, Bangladesh has achieved zero-tariff access for garments and made-ups produced using American cotton.
These changes intensify pressure on Pakistani exporters already battling high domestic challenges.
Calls for Strategic Tariff Relief
APTMA emphasized that Pakistan’s textile sector faces severe stress from elevated energy and input costs, high interest rates, regional taxes, and a tough overall business climate.
Combined with competitors’ advantages, this risks significant market loss.
The group proposed a targeted solution: seek duty-free US access for Pakistani textile and apparel items made from American cotton. In return, Pakistan would boost imports of US cotton.
APTMA has already approached the American Embassy with a similar proposal to foster concessional access.
Such an arrangement, APTMA argued, would bolster Pakistan’s exports, enhance bilateral trade ties, and increase US cotton sales.
The letter stressed the need for immediate action amid a rapidly evolving competitive landscape.