Suppliers within Pakistan textile exports sector are urgently calling for the declaration of an export emergency due to escalating threats in the European Union and United States markets. On February 5, 2026, Muhammad Babar Khan, Chairman of the Pakistan Hosiery Manufacturers and Exporters Association (PHMA), conveyed these concerns in a letter to the Prime Minister.
PHMA Letter to Prime Minister Shahbaz
The PHMA, representing over 1,200 exporting units in hosiery and knitwear, contributes approximately $6 billion annually to Pakistan’s exports. The letter highlighted the challenges posed by the proposed EU-India Free Trade Agreement and recent US tariff reductions on Indian textiles, which have intensified competitive pressures on Pakistani exporters already grappling with high production costs.
Currently, Pakistan benefits from zero-duty access to the EU under the GSP Plus scheme, contingent upon compliance with 27 international conventions. However, India’s anticipated preferential access under the EU-India FTA, without similar obligations, threatens to undermine Pakistan’s market position.
The letter further described recent US-India trade policy developments as alarming, noting that US tariffs on Indian textiles have been reduced from 50% to approximately 18%. This shift poses significant risks to Pakistan’s textile exports, necessitating immediate strategic responses to safeguard the sector’s future.
Published in SouthAsianDesk, February 5th, 2026
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