Pakistan’s textile industry has urged the government to restore the Final Tax Regime (FTR) for exporters, arguing that the move would simplify taxation and improve the sector’s global competitiveness.
Industry representatives have proposed that taxes deducted at the export stage should be treated as a final settlement of tax obligations, eliminating the need for exporters to face additional income tax liabilities and complex compliance procedures. The demand comes as exporters continue to grapple with rising production costs, high energy prices, and increasing competition from regional markets.
The textile sector, which accounts for the largest share of Pakistan’s exports, believes that restoring final tax status would improve cash flow, reduce administrative burdens, and encourage greater investment in export-oriented industries. Industry leaders argue that the current taxation framework places Pakistani exporters at a disadvantage compared to competing countries that offer more favorable export incentives.
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Exporters have also called for broader policy reforms aimed at strengthening industrial growth and increasing foreign exchange earnings. They maintain that a predictable and business-friendly tax environment is essential for expanding exports and attracting long-term investment.
The request comes ahead of key budget and policy discussions, with industry stakeholders emphasizing the need for measures that support export-led growth. According to textile associations, restoring the Final Tax Regime could help revive confidence in the sector and contribute to higher export revenues for the country.
As Pakistan seeks to strengthen its economic outlook and boost exports, the government’s response to these proposals will be closely watched by businesses and investors across the country.
