Latest news with #APTMA
Business Recorder
2 hours ago
- Business
- Business Recorder
APTMA demands immediate removal of yarn, fabric from EFS
KARACHI: All Pakistan Textile Mills Association (APTMA) has urged the government to immediately remove yarn and fabric from the Export Facilitation Scheme (EFS), warning that their continued inclusion is jeopardising the domestic textile industry and distorting fair market competition. Addressing a press conference at APTMA House here on Tuesday, Kamran Arshad Chairman APTMA said that inclusion of Yarn and Fabric in the EFS has resulted in unfair market competition as the domestic industry products are paying 18 percent GST, while importers are enjoying tax-free and duty-free regime. He said that Pakistan Cotton Brokers Association (PCBA) and Pakistan Cotton Ginners Association (PCGA) and many other textile associations are supporting APTM's move. APTMA for removing yarn & fabric from ambit of EFS On the occasion, Naveed Ahmed, Chairman of APTMA Southern Zone, Khawaja Muhammad Zubair, Chairman PCBA and Dr Jassu Mal PCGA, Yasin Siddik former chairman APTMA, Asif Inam and others were also present. 'FY25 budget removed sales tax exemption on local inputs under EFS; however, imports are sales tax-free and duty-free. This move is directly hurting the domestic industry', Kamran Arshad He mentioned that some 18 percent sales tax on local inputs is refundable, but refunds are delayed, incomplete, and costly to process, especially disadvantageous to SMEs. Due to this disparity, over 120 spinning mills and 800 ginning factories have already shut down; looms are also closing and loom workers are protesting on streets in Faisalabad. SMEs are specifically disadvantaged as they have fewer channels for import and pay sales taxes at every stage. In addition, only 60 to 70 percent of refunds are issued, while the rest are stuck in manual processing with no progress in the last 4-5 years, he added. 'Due to cheap import of yarn and fabric, exporters strongly prefer imported inputs, resulting in disadvantageous local suppliers.' There is a massive $1.5 billion increase in import of only cotton, yarn and greige cloth compared to export growth of $1.4 billion in FY25. The import of these items rose from $2.19 billion in FY24 to $3.64 billion in FY25, he mentioned. Chairman APTMA said that subjecting local supplies to 18 percent sales tax while bestowing zero rating on imports is an anti-Pakistan policy that is bleeding the economy within. He informed that APTMA has pushed as much as it can for restoration of the EFS to its June 2024 position with sales tax zero-rating on local supplies. 'We have held meetings with the Minister Finance, Chairman and Members FBR, IMF representatives; however, the IMF has not agreed to restoration.' He said a high-level committee was also formed led by Ahsan Iqbal, Minister for Planning Development & Special Initiatives of Pakistan for negotiation with IMF; however, the meeting could not hold. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
Bilateral trade: APTMA & textile bodies of Uzbekistan reach understanding
LAHORE: All Pakistan Textile Mills Association (APTMA) & Textile Associations of Uzbekistan have reached an understanding to impressively upsurge bilateral trade from the present level of US$114 million to much higher figure. This understanding was reached in a meeting of Uzbek textile delegation with members and office bearers of APTMA, held at APTMA, Lahore on May 29, 2025. Uzbekistan delegation consisted of Tokhtaev Akobirjon Khakimovich Deputy Chairman Chamber of Commerce, Jumaniyazov Mukhammadjon Bakhramjanovich Deputy Chairman Textile Industry Association, Dushanov Alisher Sherzodovich Head of Investment Department of Kharezm Region, Khamraev Rustam Elmuratovich Head of Department 'Sharof Rashidov Textile Plant' LLC, Abdullaev Shokhboz Founder 'Sanam' LLC, Kasimov Davron Founder 'Skerton Textile' LLC, Mamadaliev Daniyor Mamatvalievich Head of 'Mega Textile' LLC and Abdullayeva Dilorom Ubaydullaevna Represen-tative of CCI Uzbekistan. APTMA was represented by Kamran Arshad, Chairman APTMA, Danish Aslam, Muhammad Ali, Haroon Ellahi, senior executives of APTMA, leading textile manufacturers and exporters and Raza Baqir, Secretary General. Uzbekistan delegation headed by Tokhtaev Akobirjon Khakimovich, Deputy Chairman, informed APTMA about a series of concrete steps being undertaken by the governments of Uzbekistan and Pakistan in coordination with trade associations of both the countries to upsurge bilateral trade and avail benefits from mutual potential and strengths of both the countries. He added that this was second visit of Uzbek business delegation to Pakistan in a short span of two months and more delegations are expected in the coming months. He invited APTMA delegation to visit Uzbekistan and urged them to participate in the Investment Expo being held in Uzbekistan next month. Khakimovich said that both Pakistan and Uzbekistan share a long history and they are brothers not competitors or rivals. They should share their resources, knowledge and wisdom for common benefits. He informed that Uzbekistan Trade Center has been opened in Karachi and another is being inaugurated today at Lahore and the next one is planned for Islamabad. The visiting delegation said the two countries have already signed numerous agreements, including an agreement on Income Tax Convention and Final Protocol. Similarly, agreement is being signed between State Bank of Pakistan and Uzbek Bank for cooperation in banking. He stated that flights have been started from Lahore to Tashkent while takes only two hours to reach destination and more flights are being operationalized from Islamabad and Karachi to ease travel between both countries. Uzbek delegation proposed to sign an agreement of cooperation between APTMA and Uzbek Textile Association and a Memorandum of Understanding (MoU) for setting up an Uzbek trade center in Lahore. Uzbek team stated that hectic efforts are being made to finalize negotiations on transit trade between Uzbekistan and Pakistan to Afghanistan. He added that it is only 600km from Torkham to Uzbekistan with safe road passage and issuance of driver's visa is also being expedited to facilitate direct and rapid movement of cargo and persons. Speaking on the occasion, Chairman APTMA Kamran Arshad highlighted the problems in bilateral trade with Uzbekistan, saying that the issues confronting bilateral trade included logistic issues, obtaining and using Letters of Credit (LC) in trade with Uzbekistan, language barriers in labelling the goods in Uzbek or Russian languages, difficulties in land route due to security situation in Afghanistan, delay in signing of Preferential Trade Agreement (PTA) and delay in completion of trans Afghan railway line. Kamran highlighted incentive for setting up of industries in Pakistan. He said that Pakistan was strategically located with close proximity to all foreign markets via sea, air or land routes. He added that the goods produced in Pakistan have duty free access to European Union and China and preferential tariff for exports to Malaysia, Gulf and many other countries. He referred to a series of duties and tax exemptions for setting up of industries in Special Economic Zones (SEZ), Sole Enterprise Zone, Gawadar Free Trade Zone and on import of plant, machinery and raw materials for use in exportable goods. Kamran said there is a need for strengthening of banking channels between Pakistan & Uzbekistan, as flow of trade is hampered in absence of formal banking channel. He urged for an early signing of PTA, utilization of OIC, ECO, and Shanghai Trade Cooperation platforms for expansion of bilateral trade, joint investment in the textile industry and establishment of joint ventures, frequent exchange of trade delegations, synergies in bilateral trade expansion, mutual capacity building in textile sectors, and bilateral exchange of business delegations to identify trade and investment options as a way forward to solidify trade and investment relations between Pakistan and Uzbekistan, he added. Raza Baqir extended vote of thanks to the visiting Uzbek delegation at the end of the meeting and hoped that frequency of such visits will facilitate expansion of bilateral trade and joint ventures in all sectors of economy especially textiles. Copyright Business Recorder, 2025
Business Recorder
7 days ago
- Business
- Business Recorder
SNGPL tells APTMA all gas-related issues will be resolved on a priority basis
LAHORE: Managing Director Sui Northern Gas Pipelines Ltd (SNGPL) Amer Tufail has assured All Pakistan Textile Mills Association (APTMA) of resolving all gas-related issues of textile industry on top priority. He was talking to leading textile manufacturers and exporters during his visit to APTMA along with a team of senior SNGPL officials including Faisal Iqbal, Deputy Managing Director, Saqib Arbab, Deputy Managing Director and Jawad Naseem, Senior General Manager and other senior management. Earlier, he was received at APTMA by Kamran Arshad, Chairman, Ali Ahsan, Aamir Fayyaz, Former Chairmen, Aamir Sheikh, Faisal Jawed, Muhammad Ali, Danish Aslam, Haroon Ellahi, Shaiq Jawed, Rehman Naseem, Senior Executives, Raza Baqir, Secretary General and other senior executives of APTMA member mills. Amer Tufail said that Textile Industry has a share of more than 60% in the total exports of Pakistan and brings valuable foreign exchange of billions of dollars to the country. As such, incessant operations of textile mills is not only very important for the country but for SNGPL also. He added that export industry has always been extended high priority on supply of gas and SNGPL will continue to extend fully facilitation and cooperation to Textile Industry in order to meet their energy requirements. Amer offered to lay dedicated pipeline to the mills opting to use gas on 24 hours basis so as to save them from any gas outages or pressure issues. Speaking on the occasion, Kamran Arshad highlighted excessive high tariff of gas especially imposition of unjustified levy on supply of gas. He added that levy has exorbitantly raised gas tariff which has become the highest in the region rendering our exporter incompetitive in the global textile market. He continued that tariff of gas supplied by SNGPL is even higher than RLNG price which has tempted the industry to switch over for purchase of gas from SNGPL to the open market suppliers. He continued that electricity supplied by grid now costs Rs 29.60/kWh whereas electricity generated through gas now costs Rs 41.63/kWh. This difference of Rs 12.03/kWh per unit has forced many mills to stop consumption of gas. To illustrate his point, he informed that gas consumption by member mills during April 2025 was only 13 MMCFD as against average consumption of more than 150 MMCFD per month. The chairman APTMA requested SNGPL to take up issue of excessively high gas tariff with the relevant authorities in the Government of Pakistan as well as IMF. Copyright Business Recorder, 2025
Business Recorder
26-05-2025
- Business
- Business Recorder
Weekly Cotton Review: Trading activities remain limited
KARACHI: The New York cotton market showed mixed trends, while local cotton prices remained stable. However, trading activities were limited. The Commerce Minister hinted at a possible sales tax exemption on local cotton and proposed including it in the new cotton policy. Meanwhile, Pakistan's textile industry is rapidly declining, as expressed by Kamran Arshad, Chairman of All Pakistan Textile Mills Association (APTMA). Similarly, Ehsanul Haq warned that the cotton industry could face the worst economic crisis in history. In Faisalabad, representatives from All Pakistan Textile Mills Association (APTMA), Pakistan Cotton Ginner's Association (PCGA), All Pakistan Textile Processing Mills Association (APTPMA) / Council of Power Looms Associations/ PYMA held a joint press conference regarding EFS (Export Facilitation Scheme) and highlighted related concerns. Ehsanul Haq, Chairman of the Cotton Ginners Association, stated that incorrect data from Federal Committee on Agriculture (FCA) and National Accounts Committee (NAC) has caused difficulties for stakeholders in cultivation, imports, and price determination, negatively impacting their strategic decision-making. During the past week, the local cotton market saw stable prices, but trading remained limited. Cotton deals were finalized at prices ranging from 16,700 to 17,500 rupees, depending on quality and condition. The stock of cotton with ginners is gradually decreasing. Advance deals for the new crop of 2025 - 2026 (Phutti and cotton) are taking place. In Sindh, Phutti was traded at 8,300 to 8,500 rupees per 40 kg, while cotton deals were made at 16,000 to 17,500 rupees per maund. It is said that by the third week of May, two or three ginning factories in Punjab are expected to partially start operations using Phutti from Sindh. In lower Sindh and several cotton-growing areas of Punjab, Phutti production is underway, and partial picking has also begun. The Federal Committee on Agriculture has set a production target of 10.18 million bales of cotton for the upcoming 2025-26 season. APTMA, PCGA, and FPCCI have repeatedly appealed to the government regarding the continuation of the Export Facilitation Scheme (EFS) and are persistently urging for its approval, but no decision has been made so far. Some circles remain hopeful that a solution will be proposed in the budget. Nevertheless, textile industries and PCGA cotton ginners continue to submit requests concerning EFS. FPCCI and various organizations have held meetings and press conferences, emphasizing the need for a level playing field by restoring the EFS facility, but no positive steps have been taken thus far. On the contrary, the Textile Value Added Association is demanding the continuation of EFS. A delegation comprising PCGA Chairman Dr. Jesumal Lemani, former Chairman Suhail Mahmood Haral, and APTMA Chairman Kamran Arshad met with Prime Minister Shehbaz Sharif, who assured them that the sales tax on local cotton and other taxes on by-products would be abolished in the budget. However, there is no confirmation yet on whether a final decision will be made in this regard. Meanwhile, the Pakistan Business Forum has demanded the removal of GST in the budget. Pakistan's textile industry is rapidly declining as the government has failed to address a critical flaw in the Export Facilitation Scheme for over 10 months. According to a press release by APTMA, the result is a severely flawed tax system that has rendered the local industry uncompetitive, destroyed domestic supply chains, and handed over Pakistan's textile value chain to foreign suppliers. Kamran Arshad, Chairman of the All Pakistan Textile Mills Association (APTMA), stated that the government must immediately remove yarn and fabric from the EFS import scheme. This is the only way to prevent the collapse of Pakistan's textile industry. In the provinces of Sindh and Punjab, the price of cotton per maund ranges between Rs16,000 and Rs 17,500, depending on quality and condition. Advance deals for the new crop have been settled at Rs 17,300 to Rs 17,500 per maund. The Spot Rate Committee of the Karachi Cotton Association has maintained the spot rate stable at Rs 16,700 per maund. Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, said that international cotton prices remained stable. The price of New York cotton futures is currently trading between 66.00 and 70.00 American cents. According to the USDA's weekly export and sales report, sales for the 2024-25 season reached 141,400 bales. Vietnam remained the top buyer, purchasing 61,800 bales, while Turkey ranked second with 19,400 bales. Pakistan secured the third position by buying 18,700 bales. For the 2025-26 season, sales were 7,400 bales, with Honduras leading at 5,500 bales, followed by Vietnam in second place with 1,900 bales. Meanwhile, Federal Commerce Minister Jam Muhammad Kamal has informed the National Assembly that the government is developing a new textile policy, which is likely to include a proposal to exempt domestically produced cotton from the existing 11% sales tax. The minister also addressed the 30% retaliatory tariff imposed by the United States on Pakistan, which is currently suspended for 90 days. Exporters generally view this tariff as a challenge, though some believe it could also present an opportunity for Pakistani products in the U.S. market due to higher tariffs imposed on competing countries. To address these challenges, the Prime Minister has formed a steering committee and a working group tasked with conducting a detailed analysis of the U.S. retaliatory tariffs and formulating a policy response. The Commerce Ministry is collaborating with various ministries, departments, exporters, and relevant stakeholders to develop a strategy for effective engagement with US authorities. In the fiscal year 2023-24, Pakistan's exports to the United States amounted to $5.3 billion, while imports were $2.2 billion, resulting in a trade surplus of $3.1 billion, according to the Business Club. In the current fiscal year (until March 2025), Pakistan exported $4.4 billion worth of goods to the U.S. and imported $1.9 billion, maintaining a trade surplus of $2.5 billion. Pakistan's major exports to the U.S. include garments, medical equipment, and PET bottle-grade products, while key imports from the U.S. consist of cotton, iron and steel scrap, computers, petroleum products, soybeans, and almonds. Additionally, concerns have been raised that despite the start of the new cotton ginning season in the second week of May—a first in the country's history—the tax-free import of raw cotton and cotton yarn from abroad may push the entire cotton industry, including ginning, into the worst economic crisis in Pakistan's history. As a result, during the 2025-26 cotton season, the ginning and textile industry may operate at less than 50% of its full production capacity. This could force Pakistan to once again import billions of dollars' worth of cotton, along with billions in edible oil. Ehsan ul Haq, Chairman of the Cotton Ginners Forum, said that three ginning factories have become operational in Khanewal and Burewala in Punjab, while reports suggest one or two factories in Tando Adam, Sindh, will start operations by May 25. He stated that initial deals for new cotton are being settled between Rs. 17,000 to Rs. 17,500 per maund, while new phutti (seed cotton) is being traded at Rs. 8,300 to Rs. 8,500 per 40 kg. He further revealed that the federal government has allowed the import of cottonseed after nearly 50 years. However, reports indicate that some high-ranking government officials and private seed companies had previously imported cottonseed from China, Australia, the U.S., and Brazil for trial cultivation in various parts of Pakistan. These efforts failed largely due to environmental pollution caused by the lack of enforcement of crop zoning laws, which prevented the cotton crop from thriving. Haq emphasized that the current issue in Pakistan is not cotton production but its consumption. Despite the second-lowest cotton crop in history—only 5.5 million bales in the 2024-25 season—around 200,000 to 250,000 bales of unsold cotton remain in ginning factories. Additionally, cotton ginners have yet to receive hundreds of millions of rupees from textile mills for cotton sold on deferred payments. He also warned that cotton cultivation in some areas of Punjab, Sindh, and Balochistan is at risk due to canal water shortages and sudden temperature spikes, which may cause the crop to wither soon after sprouting. Furthermore, if the federal government does not abolish or domestically implement the Export Facilitation Scheme (EFS) in the upcoming budget, the country's cotton industry could face its worst economic crisis, leading to significant foreign exchange expenditures on imports of cotton, cotton yarn, grey cloth, and edible oil. The cotton sector is also troubled by the 'laughable' production figures released by the National Accounts Committee (NAC) for the past two years. This concern stems from previous miscalculations by the Federal Committee on Agriculture (FCA) regarding cotton cultivation and targets over the past decade. For the 2023-24 cotton season, the Pakistan Cotton Ginners Association (PCGA) reported total national production at 8.4 million bales, while the NAC projected an 'inflated figure' of 10.22 million bales. This discrepancy continues for the 2024-25 season, with PCGA reporting 5.5 million bales and NAC claiming 7.08 million bales. Ehsan ul Haq, Chairman of the Cotton Ginners Forum, emphasized that the incorrect statistics from the FCA and NAC create significant difficulties for stakeholders in formulating their strategies for cultivation, imports, and pricing. 'Inaccurate data could lead to a decline in cotton-based exports due to insufficient imports of raw cotton,' he warned. He stressed the importance of government institutions consistently releasing accurate cultivation and production statistics in their annual planning to help stakeholders avoid such complications. Meanwhile, both the Aptma and the PCGA have written to Prime Minister Shehbaz Sharif and launched an advertising campaign. Their message is clear: if the Export Facilitation Scheme is not abolished or its domestic application is not implemented, and if the 18 percent sales tax on cotton seed, cotton seed oil, and oil cake (khal banola) is not removed, the cotton ginning and textile sectors will find it nearly impossible to remain operational. Approximately 800 ginning factories and over 120 textile mills have already ceased operations due to this scheme. Copyright Business Recorder, 2025
Business Recorder
23-05-2025
- Business
- Business Recorder
APTMA urges MoF to allow textile industry to import LNG
ISLAMABAD: All Pakistan Textile Mills Association (APTMA) has sent its proposals for budget 2025-26 to Finance Minister, Senator Muhammad Aurangzeb and sought an appointment for a detailed discussion on them. The budget proposals are as follows: POWER (i) ensure 9 cents/kWh regionally competitive industrial power tariff; (ii) eliminate Rs 100 billion cross-subsidy to other sectors; (iii) abolish Time-of-Use (ToU) tariff regime and implement uniform tariff; and (iv) allow B2B power contracts by operationalizing CTBCM or otherwise. APTMA urges govt to re-evaluate grid levy on industrial CPPs GAS: (i) reclassify cogeneration users to industrial process gas tariff; (ii) correct calculation of Grid Transition Levy to reflect actual tariff and costs; (iii) allow B2B procurement of domestic gas under Third Party Access through transparent competitive bidding, and permit textile sector to import own LNG. EXPORT FACILITATION SCHEME ANOMALY: (i) restoration of EFS to its June 2024 framework, with zero rating on local supplies, is the first-best solution. However, the IMF has not been agreeable despite being repeatedly approached by the government and industry and; (ii) in this scenario, implementation of a negative list of EFS imports, including yarns and fabric, is the only viable way forward. CORPORATE INCOME TAX: eliminate dual advance taxation by removing the one percent advance tax on export proceeds, ensuring exporters are taxed only under the normal, predictable regime. SALES TAX REGIME: consider implementing a graduated sales tax regime (similar to Indian model), where inputs along the value chain are taxed at lower rates than final goods to enhance compliance, reduce tax evasion, and improve manufacturing competitiveness. OUTSTANDING REFUNDS AND DUES: (i) despite assurances, textile exporters face significant financial strain due to delayed refunds across key categories causing a massive liquidity crunch across the industry; (ii) immediately clear all outstanding dues of industry. INCENTIVES FOR INVESTMENT AND EXPORT: (i) the government must introduce targeted incentive programs such as DLTL, export rebate schemes, and tax relief measures for high-value textile and apparel exports;(ii) provide tax credits for fresh investment in export-oriented textile manufacturing ;(iii) targeted incentives for export of new products and in new markets; (iv) operationalize financing schemes (TERF/LTFF) under EXIM Bank. GREENING OF INDUSTRIES: (i) provide concessional financing and tax incentives for energy efficient upgrades, solar integration, and wastewater treatment in existing industrial units; (ii) mandate and support green building standards for all new export-oriented factories, including central utilities in industrial parks (ETPs, solar-ready roofs, etc), Set up Green Compliance Facilitation Centres to assist firms with audits, certifications (LEED, EDGE), and buyer linkages focused on sustainable sourcing. OTHER EXPORT FACILITATION MEASURES: (i) reduce customs duty on purified terephthalic acid to zero percent for cascading reduction in duties on PSF; (ii) develop industrial zones for 1,000 garment plants with plug and play facilities, with targeted incentives for joint ventures with Chinese and other foreign investors; (iii) establish free commercial zones near seaports and airports to lower costs and ease logistical barriers; (iv) traceability must be made mandatory by law, especially at the farming and ginning stages to ensure full compliance; (v) testing and certification are major challenges for textile and apparel exporters in Pakistan due to limited local facilities and high costs of sending goods abroad. Copyright Business Recorder, 2025
