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ISLAMABAD: At a time when the country’s export proceeds are declining, the government has released Rs10 billion in payments against decade-long outstanding subsidies and textile upgradation claims, offering partial relief to exporters struggling with cash-flow constraints.
The release of a bulk amount in one go comes as the textile sector grapples with surging production costs amid the ongoing Middle East conflict, while export receipts in FY26 fell short of the target due to multiple pressures. However, an outstanding amount of Rs1.94bn remains unsettled.
The bulk of the authorised amount relates to the Textile Upgradation Fund (TUF) for 2009-14, which alone accounts for Rs4.35bn. Another Rs4.18bn has been cleared under the Duty Drawback of Taxes (DDT) for 201,821 in the textile sector. These sizeable allocations underscore that refunds from decade-old trade policies had remained pending, tying up exporters’ liquidity and complicating their competitiveness in global markets.
Textile, non-textile dues partially cleared as Rs1.94bn still outstanding
