Page 18 - CMA Journal (Sep-Oct 2025)

E x c lus iv e I nt er v iew

to ease liquidity pressures and reduce reliance on costly certi cations such as OEKO-TEX. With data showing
EXCLUSIVE INTERVIEW borrowing. Furthermore, export nance must be made over-reliance on limited markets and product lines,
cheaper and available for longer tenures by enhancing
the limits and scope of EFS and LTFF, enabling exporters Pakistan must adapt to emerging opportunities in China,
Bangladesh, and GCC markets through customized,
to invest in capacity expansion, modernization, and high-quality, and design-driven textile o erings.
compliance upgrades essential for sustained global
competitiveness. ICMA: How is the Pakistan Textile Council working
with the government to promote sustainable
ICMA: Rising energy and production costs remain a
“ major challenge, what steps are essential to improve industrial growth and export diversi cation?
To revive the industrial base and enhance
the cost competitiveness for manufacturers and
Fawad Anwar: PTC is an apex body of top textile and
exporters?
apparel exporters. It is a not-for-pro t organization and
export competitiveness, Pakistan must
disadvantage compared
to its
regional
cost
prioritize tax and regulatory simplification by Fawad Anwar: Pakistan’s export industry is at a severe works as a policy advocacy platform. We remain
continuously in contact with all stakeholders, both local
competitors due to high energy cost, taxation,
and international. We provide evidence-based policy
streamlining procedures, reducing nancing cost, stuck up refunds and other non- recommendations to the government. We submit
refundable taxes and levies. The government should proposals during the budget-making exercise and also
compliance burdens, and building To revive and sustain industrial growth, Pakistan must remove cross subsidy from industrial power tari and share input in policy-making exercises of the
abolish peak rates and also remove cross subsidy from
Pakistan’s soft image and global market implement a focused set of reforms centered on industrial gas prices, eradicate disparity in prices Additionally, maintaining macroeconomic stability government in relation to energy, tax, and export
simpli cation, competitiveness, and access. Streamlining
enhancement. We also keep in contact with major
perception through business advocacy tax procedures and reducing compliance burdens will among the consumers and ensure reliable supplies to through disciplined scal management, timely stakeholder organizations operating in our export
industrial consumers. If the energy prices in Pakistan
promote
formalization
and
investment,
while
payments, and a clear roadmap for debt and energy
and international marketing government funding should be strategically utilized to are not regionally competitive, Pakistan exports will reforms will signal reliability to both domestic and markets like the EU, US, and UK to help Pakistan build its
image as a sustainable and responsible sourcing
not compete in international markets.
enhance Pakistan’s global image through business
advocacy and marketing, rather than solely funding foreign investors. Streamlined regulations, digitalized destination. We also ensure our presence at major
certi cation or testing infrastructure. ICMA: Policy uncertainty often discourages invest- approvals, and rule-based decision-making will further national and international events on sustainability,
reinforce trust, creating an enabling environment where
ment; how can the government ensure stability and
Mr. Fawad Anwar Energy sector rationalization is equally vital, ensuring build lasting business con dence? businesses can plan, invest, and expand with con dence. circularity, and green economic growth.
“
regionally competitive electricity and gas tari s through
Managing Director, Al-Karam formal SROs or legal instruments to provide Fawad Anwar: The Government of Pakistan must priori- ICMA: How can Pakistan move beyond the low-value ICMA: As a business leader, what message would you
tize policy consistency, institutional coordination, and
like to give policymakers on reviving Pakistan’s
predictability and support export competitiveness.
Textile Mills Pvt. Ltd. and Chairman Expanding access to nance for SMEs and industrial transparent governance. Establishing long-term, legally exports and encourage greater innovation and value industrial base?
addition across industries?
backed policy frameworks particularly for taxation,
of Pakistan Textile Council (PTC) units, especially in textiles and allied sectors, through energy pricing, and export incentives will help reduce the Fawad Anwar: To revive the industrial base and enhance
long term concessional loans and targeted green uncertainty that deters investors. Strengthening consul- Fawad Anwar: Moving up the value chain requires export competitiveness, Pakistan must prioritize tax and
incentives will drive modernization and sustainability. In tation mechanisms with industry through structured targeted incentives and e ective public–private regulatory simpli cation by streamlining procedures,
ICMA: How do you view the current state of Pakistan's particular, the Pakistan Textile Council underscores the public–private dialogue can ensure predictability and coordination. Policymakers must incentivize downstream reducing compliance burdens, and building Pakistan’s
Economy, and what key reforms are needed to revive urgent need to relaunch and strengthen the Renewable policy continuity across political cycles. exports by o ering lower duties for high value-added soft image and global market perception through
industrial growth? Energy and Green Transition Financing Scheme to products such as nished garments, technical textiles, and business advocacy and international marketing. Equally
enable industry wide transformation. performance fabrics rather than focusing on raw ber or
Fawad Anwar: Pakistan’s macroeconomic indicators show some crucial is energy sector rationalization to ensure
stability as the IMF and Pakistan have reached a sta level ICMA: What policy and tari measures do you believe greige exports. Factory modernization should be made regionally competitive electricity and gas tari s through
agreement for another USD 1.2 billion. Our policy rate is stable at can make Pakistan’s industries more competitive in nanceable through an expanded LTFF that supports formal legal instruments, providing certainty and cost
11%, however, Pakistan's current account recorded a de cit of the global market? automation, compliance with environmental and labor stability for exporters. Additionally, improving access to
USD 594 million for the rst quarter of FY26 (July to September standards, and energy-e cient machinery, with the State nance through expanded credit facilities, concessional
2025). Pakistan’s exports were recorded at USD 7.62 billion Fawad Anwar: Pakistan must restore the Export Finance Bank reorienting its instruments through sector-speci c long-term nancing, and targeted green incentives will
during Q1 FY26, showing a 3.4% decline compared to USD 7.89 Scheme (EFS) in its original form, as taxing raw materials windows.
billion in the same period of FY25. In September 2025, exports for exports contradicts global best practices and under- drive expansion, innovation, and sustainability, with the
stood at USD 2.50 billion, re ecting an 11% year on year decrease mines competitiveness. Recent amendments imposing Similarly, public co-investment in textile R&D centers, Pakistan Textile Council emphasizing the urgent
from USD 2.81 billion in September 2024. LSM, which duties and GST on essential textile inputs have hurt testing facilities, and sample hubs especially with relaunch of the Renewable Energy and Green Transition
contributes around 8% to GDP, posted a contraction of 0.74% in exporters and should be reversed. Equally critical is the subsidized SME access, can accelerate innovation, ensure Financing Scheme. The potential to grow Pakistan’s
FY25, falling short of its 3.5% growth target. In FY24, the LSM restoration of regionally competitive and legally guaran- faster turnaround, and help rms meet global compliance exports is huge, and all we need to do as a country is put
sector had also declined marginally by 0.03% after recording teed electricity and gas tari s for export-oriented units, demands. Export diversi cation should be actively our house in order.
0.92% growth in FY23. as high energy costs erode pro t margins even when
global market conditions are favorable. promoted through market development funds, enabling The Editorial Board thanks Mr. Fawad Anwar, Managing Director,
In the current nancial year, although Pakistan is at an advantage entry into non-traditional regions like Africa, Latin Al-Karam Textile Mills Pvt. Ltd. and Chairman of Pakistan Textile
over India and China in terms of tari s, both these countries’ Export rebates and refunds should be fully digitalized America, and Central Asia, and supporting participation in Council (PTC) for sparing his precious time to give an exclusive interview
exports have increased. This indicates the importance of policy and simpli ed, with statutory timelines such as 30 to 45 trade fairs, buyer delegations, and sustainability for Chartered Management Accountant Journal.

and structural reforms. days for duty drawback, refund, and EDF disbursements
16 ICMA’s Chartered Management Accountant, Sep-Oct 2025