By Ayesha Saba
Pakistan is planning major steps to make it easier for textile and apparel businesses to get loans, export insurance, and green financing. Officials hope these moves will help the industry grow sustainably and compete better in global markets. This focus on Pakistan textile financing aims to resolve long-standing financial challenges while boosting modernization.
Draft Textile and Apparel Policy 2025–30 Focus
The government is focusing on the draft Textile and Apparel Policy 2025–30, which aims to tackle long-standing financial problems for manufacturers and exporters while encouraging investment in cleaner and more energy-efficient technology.
Addressing Cash Flow Challenges
Currently, many textile companies face cash flow problems because loans are expensive, payments are often delayed, and affordable credit is hard to find.
The draft policy stresses that easier access to credit and insurance is essential to keep production running, boost exports, and protect businesses from global market swings.
Expanding Financing Programs
The policy proposes expanding the Export Finance Scheme (EFS) and the Long-Term Financing Facility (LTFF) to provide low-cost funding for day-to-day operations, buying machinery, and upgrading technology.
These programs will be updated to include more small and medium-sized enterprises, ensuring that even smaller manufacturers can benefit.
Boosting Export Financing with EXIM Bank
Export financing will also get a boost through the Export-Import Bank of Pakistan (EXIM Bank). The bank will offer credit insurance, trade finance, and guarantees to reduce risks for exporters.
It will help commercial banks lend more to the sector and facilitate credit arrangements between suppliers and buyers, making it easier for exporters to grow in international markets.
Promoting Green Financing and Sustainability
Green financing is another key focus. The State Bank of Pakistan, together with industry stakeholders, will develop loans linked to sustainability. These will support projects that improve energy efficiency, adopt renewable energy, and reduce waste.
The draft policy also introduces a National Green Taxonomy to guide banks and investors toward climate-friendly projects. These efforts aim to align Pakistan’s textile sector with global sustainability standards, including the Sustainable Development Goals and the Paris Agreement.
The policy also encourages using donor-backed programs and international partnerships to fund energy and water efficiency projects.
The Ministries of Commerce and Climate Change will work with international agencies to bring in low-cost financing and technical help for sustainable industrial upgrades.
Financial literacy is another priority. The draft policy recommends training programs for textile entrepreneurs, especially small businesses, to help them understand and use credit, insurance, and green finance tools.
This knowledge will help businesses manage risks and access new financing opportunities effectively.
Finally, the document stresses that improving access to credit, export insurance, and green financing is critical for modernizing Pakistan’s textile sector.
A strong financial system will help companies stay competitive, manage risks, and contribute to environmentally responsible, export-led growth for the country.
Author Profile
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Ayesha Saba is an economic journalist advocating for Pakistan's shift from unstable farming to high-value sectors.
Her sharp analysis of the central bank's report spotlights tourism and technology as vital engines for job creation and resilience, urging urgent policy pivots toward a **diverse and sustainable future.
