MUSHTAQ GHUMMAN
ISLAMABAD: The All-Pakistan Textile Mills Association (APTMA) is reportedly engaged in consultations at the highest levels to resolve the longstanding issues faced by its members, though without expectations of any immediate relief as the country remains under an International Monetary Fund (IMF) programme.
In a letter addressed to Minister for Economic Affairs Ahad Khan Cheema and Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan, APTMA Chairman Kamran Arshad outlined key challenges confronting the textile sector and sought a suitable time for a detailed meeting.
On taxation, APTMA highlighted concerns over the minimum turnover tax, double advance tax on exporters, and the multiplicity of taxes, which it said are undermining the sector’s competitiveness. It was acknowledged that these issues are being comprehensively reviewed by the Prime Minister’s Working Group, chaired by Shahzad Saleem.
Regarding the installation of cameras in spinning mills, the government clarified that the notified cost is a ceiling rather than a fixed price, allowing mills flexibility to negotiate with vendors. Reference was also made to ongoing deliberations on providing tax credits or rebates for these costs.
“We have since held detailed discussions with the Federal Board of Revenue (FBR), and a joint committee comprising FBR officials and APTMA members is being constituted to address these issues in a mutually beneficial manner,” the APTMA chairman said.
According to APTMA, the Power Division acknowledged that current electricity tariffs remain high and contribute significantly to the industry’s uncompetitive cost structure. While recognising the heavy cross-subsidy burden on industrial consumers, the authorities pointed to fiscal constraints. The incremental tariff relief package approved by NEPRA was presented as the available relief mechanism. APTMA was advised to pursue proposed changes to the NEPRA Consumer Service Manual to enable lowering of benchmarks within the incremental package framework.
On the issue of multiple power connections at the same premises, APTMA sought facilitation for units with load requirements exceeding 7.5 MW, which are currently required to establish their own grid. The association requested permission for additional connections at the same premise where capacity is available on the local grid, instead of compelling industries to invest in separate grid infrastructure. The Power Minister expressed support in principle, and APTMA will submit the proposal in writing for detailed evaluation.
Commenting on the proposal for a uniform industrial power tariff to replace the time-of-use (ToU) regime, the APTMA chairman said it was agreed that the matter would be taken up in a separate meeting with the Power Minister. The minister indicated that any revenue-neutral proposal that does not increase tariffs for other consumer categories would be considered.
On the non-availability of electricity at the Lasbela Industrial Estate Development Authority (LIEDA) and outstanding RCET dues, APTMA said the Power Division stated that DISCOs and K-Electric have been directed to facilitate captive users wishing to connect to the grid. APTMA was asked to share a list of units seeking grid connections to enable expeditious resolution.
Sharing the government’s position on the levy imposed on captive power users, the APTMA chairman said it was explained that IMF-related constraints do not allow for reversal of the levy, as its calculation is based on peak-hour tariffs at the Fund’s insistence. However, for genuinely constrained users without grid access, the Petroleum Minister expressed willingness to pursue exemptions during the next IMF review.
On anti-dumping duties on yarn and fabric, the SAPM on Industries and Production advised that the National Tariff Commission (NTC) is being strengthened. APTMA was asked to submit a formal application, with the ministry assuring follow-up should the NTC fail to act. Consideration of interim safeguards during the pendency of the anti-dumping process was also indicated.
Regarding the Export Facilitation Scheme (EFS), both the Minister for Commerce and the SAPM on Industries reaffirmed that no changes are currently being made to the scheme. It was reiterated that, if any amendments are proposed in the future, the EFS would be restored to its original form, including zero-rating of sales tax on both local and imported inputs for export manufacturing, reflecting strong government support for the scheme in its original structure.
