Stories
Pakistan Knitwear Export Sector Faces Mounting Cost Crisis
N
News18•08-10-2026, 14:15
Pakistan Knitwear Export Sector Faces Mounting Cost Crisis
- •Pakistan's hosiery and knitwear export industry is struggling with rising production expenses, high freight rates, and delayed tax refunds.
- •The Pakistan Hosiery Manufacturers and Exporters Association has urged the federal government to take immediate steps to protect export orders.
- •Shipping costs to key international destinations have surged between 1.5 and 2.5 times, raising the final landed price of Pakistani goods.
- •Exporters face narrow profit margins or the risk of losing international buyers to regional competitors due to increased pricing pressures.
- •The PHMA has proposed a temporary Duty Drawback on Local Taxes and Levies incentive ranging from 6 to 8 percent to provide relief.
Key Questions Answered
Pakistan's hosiery and knitwear export industry is facing rising production expenses, high freight rates, delayed tax refunds, electricity shortages, and heavy taxation.
The PHMA has urged the government to take immediate steps to protect export orders, hold an urgent consultative meeting with stakeholders, and provide temporary financial relief.
The PHMA has proposed a temporary Duty Drawback on Local Taxes and Levies incentive ranging between 6% and 8% of the Free on Board value on a shipment basis.
