Value-added textile exporters have flagged upfront taxes, high energy tariffs and liquidity constraints as major hurdles to export growth during a consultative session chaired by Federal Minister for Commerce Jam Kamal Khan.

The meeting, held in hybrid mode at the Ministry of Commerce, was attended by chairmen and representatives of a host of textile associations. The aim of the discussion was to thoroughly examine the key challenges facing the value-added apparel and textile sector and devise strategic measures to strengthen global competitiveness and accelerate exports.

According to an official statement issued on Friday, industry representatives outlined the challenges impeding export growth. These included the burden of upfront taxes, elevated energy tariffs combined with infrastructural limitations, liquidity constraints due to pending refunds, reduced utilisation periods under the temporary importation scheme, insufficient credit limits under the Export Finance Scheme and repeated policy shifts affecting expansion plans.

The minister said a dedicated technical committee, constituted on the prime minister's directions, was reviewing the limited utilisation period under the Export Facilitation Scheme and would submit recommendations for immediate resolution. Representatives of Micro, Small and Medium Enterprises urged the State Bank of Pakistan and EXIM Bank to issue clear guidelines for uniform acceptance of foreign master Letters of Credit by commercial banks as collateral for opening back-to-back LCs to improve working capital access.