Business Recorder
LAHORE: The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) and Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) have raised serious concerns over the unprecedented surge in petroleum prices, warning that the country’s export-oriented hosiery and garments sectors are facing a severe cost crisis that could further erode their already weakened global competitiveness. In a joint reaction on Sunday, PHMA Zonal Chairman Abdul Hameed said the sharp increase in fuel prices—triggered partly by rising global oil markets amid ongoing Iran-related Middle East tensions—has disproportionately impacted Pakistan due to excessive domestic price adjustments and heavy taxation. READ ALSO: Small traders reject PM’s fuel price reduction step “While international oil prices have indeed risen due to geopolitical instability, the magnitude of increase imposed in Pakistan is far beyond regional trends,” he stated. “This has placed our exporters, especially the value-added hosiery and garments industry, at a significant disadvantage.” According to industry estimates, Pakistan has witnessed a cumulative fuel price increase of around 70–77%, whereas regional competitors have kept hikes relatively modest. India and Bangladesh raised fuel prices by approximately 2–10%, while China and Vietnam maintained controlled adjustments through subsidies and policy buffers. Industry leaders stressed that this stark disparity is rapidly making Pakistani apparel exports uncompetitive in global markets. Former PRGMEA Chairman Ejaz Khokhar said the situation has become alarming for exporters who are already struggling with rising costs and shrinking margins. “The government has passed on the entire burden of global oil price increases to the industry, unlike regional countries that are protecting their export sectors. This policy approach is damaging Pakistan’s export potential,” he said. Former PRGMEA Chairman Mubashar Naseer Butt noted that the garments sector, which heavily relies on imported raw materials and energy-intensive processes, is particularly vulnerable. “Freight, logistics, and production costs are rising sharply. Buyers are extremely price-sensitive and are already shifting orders to countries like Bangladesh and Vietnam,” he said. PHMA former Chairman Shahzad Azam pointed out that the hosiery sector is facing a “double burden” of high energy tariffs and unprecedented fuel prices. “We were already uncompetitive due to expensive electricity and gas. Now, with fuel costs skyrocketing, the situation has become unsustainable for many exporters,” he remarked. Similarly, PHMA former Chairman Naseer Butt warned that small and medium-sized enterprises (SMEs) would be the hardest hit. “Many units are operating on thin margins and cannot absorb such a massive increase in input costs. If immediate relief is not provided, closures and job losses will be inevitable,” he cautioned. The industry leaders highlighted that fuel is a fundamental input affecting transportation, raw material movement, and overall production costs. The massive increase in petrol and diesel prices is expected to significantly inflate export pricing, reduce profit margins, and weaken Pakistan’s position in international markets. They further warned that higher logistics and energy costs could force exporters to scale down operations, reduce workforce, or shift focus away from export markets. “This is not just a cost issue—it is a survival challenge for the entire export-oriented textile value chain,” Abdul Hameed added. The representatives of both PHMA and PRGMEA urged the government to immediately review its petroleum pricing strategy and provide targeted relief to export sectors. Key proposals included temporary suspension or reduction of the petroleum development levy (PDL), rationalization of energy tariffs, and provision of fuel subsidies for export-oriented industries. They also stressed the need for long-term structural reforms, including investment in alternative energy sources, improved supply chain efficiency, and policy consistency to restore investor confidence. Copyright Business Recorder, 2026
Go to News Site