Pakistan, May 26 -- Pakistan's textile industry has warned the government that an effective tax burden of up to 113% is severely damaging exports and creating a deep financial crisis ahead of the FY2026-27 budget. The Pakistan Textile Council told Prime Minister Shehbaz Sharif that exporters are struggling to survive because excessive taxes, delayed refunds, and blocked working capital continue weakening the country's largest export sector. Industry leaders argued that current policies are making export growth financially unsustainable despite rising international demand for Pakistani textile products.

In its supplementary budget proposal, PTC Chairman Fawad Anwar highlighted that exporters are operating on profit margins of only 3% to 4...