Page 19 - 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
Pakistan must restore the borrowing. Furthermore, export nance must be made over-reliance on limited markets and product lines,
cheaper and available for longer tenures by enhancing
Pakistan must adapt to emerging opportunities in China,
Export Finance Scheme (EFS) in the limits and scope of EFS and LTFF, enabling exporters Bangladesh, and GCC markets through customized,
to invest in capacity expansion, modernization, and
high-quality, and design-driven textile o erings.
its original form, as taxing raw compliance upgrades essential for sustained global ICMA: How is the Pakistan Textile Council working
competitiveness.
materials for exports ICMA: Rising energy and production costs remain a with the government to promote sustainable
major challenge, what steps are essential to improve industrial growth and export diversi cation?
contradicts global best the cost competitiveness for manufacturers and Fawad Anwar: PTC is an apex body of top textile and
exporters?
practices and undermines Fawad Anwar: Pakistan’s export industry is at a severe apparel exporters. It is a not-for-pro t organization and
works as a policy advocacy platform. We remain
competitiveness cost disadvantage compared to its regional continuously in contact with all stakeholders, both local
competitors due to high energy cost, taxation,
nancing cost, stuck up refunds and other non- and international. We provide evidence-based policy
recommendations to the government. We submit
refundable taxes and levies. The government should proposals during the budget-making exercise and also
To revive and sustain industrial growth, Pakistan must remove cross subsidy from industrial power tari and share input in policy-making exercises of the
implement a focused set of reforms centered on abolish peak rates and also remove cross subsidy from government in relation to energy, tax, and export
simpli cation, competitiveness, and access. Streamlining industrial gas prices, eradicate disparity in prices Additionally, maintaining macroeconomic stability
tax procedures and reducing compliance burdens will among the consumers and ensure reliable supplies to through disciplined scal management, timely enhancement. We also keep in contact with major
promote formalization and investment, while industrial consumers. If the energy prices in Pakistan payments, and a clear roadmap for debt and energy stakeholder organizations operating in our export
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
enhance Pakistan’s global image through business not compete in international markets. image as a sustainable and responsible sourcing
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,
ment; how can the government ensure stability and reinforce trust, creating an enabling environment where circularity, and green economic growth.
Energy sector rationalization is equally vital, ensuring build lasting business con dence? businesses can plan, invest, and expand with con dence.
regionally competitive electricity and gas tari s through Fawad Anwar: The Government of Pakistan must priori- ICMA: As a business leader, what message would you
formal SROs or legal instruments to provide tize policy consistency, institutional coordination, and ICMA: How can Pakistan move beyond the low-value like to give policymakers on reviving Pakistan’s
predictability and support export competitiveness. transparent governance. Establishing long-term, legally exports and encourage greater innovation and value
Expanding access to nance for SMEs and industrial backed policy frameworks particularly for taxation, addition across industries? industrial base?
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,
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
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
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 crucial is energy sector rationalization to ensure
greige exports. Factory modernization should be made
ICMA: What policy and tari measures do you believe regionally competitive electricity and gas tari s through
can make Pakistan’s industries more competitive in Policymakers must incentivize nanceable through an expanded LTFF that supports formal legal instruments, providing certainty and cost
the global market? automation, compliance with environmental and labor stability for exporters. Additionally, improving access to
Fawad Anwar: Pakistan must restore the Export Finance downstream exports by offering standards, and energy-e cient machinery, with the State nance through expanded credit facilities, concessional
Bank reorienting its instruments through sector-speci c
Scheme (EFS) in its original form, as taxing raw materials lower duties for high windows. long-term nancing, and targeted green incentives will
for exports contradicts global best practices and under- drive expansion, innovation, and sustainability, with the
mines competitiveness. Recent amendments imposing value-added products such as Similarly, public co-investment in textile R&D centers, Pakistan Textile Council emphasizing the urgent
duties and GST on essential textile inputs have hurt testing facilities, and sample hubs especially with relaunch of the Renewable Energy and Green Transition
exporters and should be reversed. Equally critical is the finished garments, technical subsidized SME access, can accelerate innovation, ensure Financing Scheme. The potential to grow Pakistan’s
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
teed electricity and gas tari s for export-oriented units, textiles, and performance demands. Export diversi cation should be actively our house in order.
as high energy costs erode pro t margins even when
global market conditions are favorable. fabrics rather than focusing on promoted through market development funds, enabling The Editorial Board thanks Mr. Fawad Anwar, Managing Director,
entry into non-traditional regions like Africa, Latin
Export rebates and refunds should be fully digitalized America, and Central Asia, and supporting participation in Al-Karam Textile Mills Pvt. Ltd. and Chairman of Pakistan Textile
Council (PTC) for sparing his precious time to give an exclusive interview
and simpli ed, with statutory timelines such as 30 to 45 raw fiber or greige exports trade fairs, buyer delegations, and sustainability for Chartered Management Accountant Journal.
days for duty drawback, refund, and EDF disbursements

ICMA’s Chartered Management Accountant, Sep-Oct 2025 17