The All-Pakistan Textile Mills Association (APTMA) has said it is engaged in consultations at senior levels of government to address longstanding issues facing the textile industry, while acknowledging that immediate relief is unlikely as Pakistan remains under an International Monetary Fund programme, Business Recorder reported.
In a letter to Minister for Economic Affairs Ahad Khan Cheema and Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, APTMA Chairman Kamran Arshad outlined key concerns related to taxation, energy costs and regulatory compliance, and requested a meeting for detailed discussions.
On taxation, APTMA flagged the minimum turnover tax, double advance tax on exporters and the multiplicity of federal and provincial levies, saying these measures continue to erode competitiveness. It noted that these issues are under review by the Prime Minister’s Working Group chaired by Shahzad Saleem.
Addressing concerns over the installation of cameras in spinning mills, the association said the government clarified that the notified cost represents a ceiling rather than a fixed rate, allowing mills to negotiate with vendors. It added that discussions are underway on possible tax credits or rebates to offset these costs, with a joint committee comprising officials from the Federal Board of Revenue and APTMA members being formed to resolve outstanding issues.
APTMA said the Power Division acknowledged that electricity tariffs remain high and are a major contributor to the sector’s uncompetitive cost structure, but pointed to fiscal constraints. The incremental tariff relief package approved by NEPRA was cited as the only available mechanism at present, with the association advised to pursue amendments to the NEPRA Consumer Service Manual to enable lower benchmarks.
The association also sought facilitation for textile units with load requirements exceeding 7.5 megawatts, which are currently required to establish their own grid connections. It requested permission for additional connections at the same premises where local grid capacity exists, rather than forcing industries to invest in separate infrastructure. The Power Minister expressed support in principle and asked APTMA to submit a written proposal.
On proposals for a uniform industrial power tariff to replace the time-of-use regime, APTMA said the matter would be taken up in a separate meeting with the Power Minister, who indicated that any revenue-neutral proposal would be considered.
Regarding captive power users, APTMA said the government maintained that IMF-related constraints prevent reversal of the levy imposed on them, though exemptions may be pursued for units without grid access during the next IMF review.
The association also raised concerns over anti-dumping duties on yarn and fabric, with the government advising APTMA to submit a formal application to the National Tariff Commission, which is being strengthened. On the Export Facilitation Scheme, the government reaffirmed that no changes are currently planned and that any future amendments would restore the scheme to its original zero-rated structure for export manufacturing.
APTMA said it would continue engagement with relevant ministries to seek structural solutions, while recognising the limitations imposed by the IMF programme.
