Latest news with #ExportFacilitationScheme
Business Recorder
3 days ago
- Business
- Business Recorder
Local cotton: Pakistan govt working to abolish 18% GST, says minister
ISLAMABAD: Minister for National Food Security Rana Tanveer Hussain said on Wednesday that the government is actively working to abolish the 18 per cent general sales tax (GST) on locally-produced cotton, including lint and cottonseed, to support farmers and boost domestic cotton production. The minister made these remarks during a meeting with a delegation from the Pakistan Business Forum (PBF), led by Chief Organiser Chaudhry Ahmad Jawad. Hussain said the government is also addressing pending cotton cess liabilities in the textile sector to ensure the Central Cotton Committee (CCC) remains financially stable. 'We are considering limiting tax-free imports of yarn and fabric under the Export Facilitation Scheme (EFS) to encourage local cotton consumption,' he added. PBF urges govt to take urgent measures to save cotton He stated that the government aims to produce 10 million cotton bales this year and is committed to offering relief to farmers in the next budget. The meeting discussed in detail the upcoming federal budget and advocate for targeted relief for the agricultural sector. The PBF delegation included Senior Vice President Amna Awan, Chairman South Punjab Talat Suhail, Chairman KP Ashfaq Paracha, and Deputy Secretary General Zafar Iqbal. PBF Chief Organiser Chaudhry Ahmad Jawad urged the government to eliminate the GST on local cotton and lower customs duties on imported machinery for the cotton ginning sector. 'Sustainable economic growth is not possible without strong support for agriculture,' he emphasised. Jawad also called for the implementation of new seed varieties developed by the Pakistan Agricultural Research Council (PARC) at the district level. 'Farmers are unaware of the latest research being carried out in Islamabad. It needs to be transferred to the grassroots through local agriculture departments,' he said. The government must take concrete steps to reduce the cost of cultivation. Fertiliser prices should also be brought down by offering tax relief, added Jawad. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
PRGMEA opposes 18pc tax imposition under EFS
LAHORE: The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) on Wednesday opposed any move to impose 18 percent sales tax on exporters under the Export Facilitation Scheme (EFS) and warned that such regressive measures will paralyze the garment export sector, stifle cash flow, and derail Pakistan's opportunity to capture a significant share of the global apparel market. Reacting to the proposals suggesting that the government is planning to slap a hefty tax burden on exporters, the PRGMEA voiced serious concern over what it described as a deliberate campaign by vested interests in the domestic textile sector to weaken the growth potential of the country's most dynamic and value-added industry — the ready-made garments (RMG) sector. The association called for the immediate withdrawal of any such proposal and demanded that the EFS remain untouched and fully functional to support exporters with timely and hassle-free access to tax-free inputs. Dr Ayyazuddin, PRGMEA Regional Chairman, stated that the EFS is not a luxury — it is a necessity for export-led growth. The garments industry is entirely export-oriented and sits at the end of the textile value chain, bearing the brunt of delayed refunds and multiple taxes. Exporters already pay sales tax upfront and wait for months to receive refunds, often facing a three-month delay, which severely hampers cash flow and operational capacity. Imposing additional taxes on top of this already burdensome system would be disastrous. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
Local cotton: Govt working to abolish 18pc GST: minister
ISLAMABAD: Minister for National Food Security Rana Tanveer Hussain said on Wednesday that the government is actively working to abolish the 18 per cent general sales tax (GST) on locally-produced cotton, including lint and cottonseed, to support farmers and boost domestic cotton production. The minister made these remarks during a meeting with a delegation from the Pakistan Business Forum (PBF), led by Chief Organiser Chaudhry Ahmad Jawad. Hussain said the government is also addressing pending cotton cess liabilities in the textile sector to ensure the Central Cotton Committee (CCC) remains financially stable. 'We are considering limiting tax-free imports of yarn and fabric under the Export Facilitation Scheme (EFS) to encourage local cotton consumption,' he added. PBF urges govt to take urgent measures to save cotton He stated that the government aims to produce 10 million cotton bales this year and is committed to offering relief to farmers in the next budget. The meeting discussed in detail the upcoming federal budget and advocate for targeted relief for the agricultural sector. The PBF delegation included Senior Vice President Amna Awan, Chairman South Punjab Talat Suhail, Chairman KP Ashfaq Paracha, and Deputy Secretary General Zafar Iqbal. PBF Chief Organiser Chaudhry Ahmad Jawad urged the government to eliminate the GST on local cotton and lower customs duties on imported machinery for the cotton ginning sector. 'Sustainable economic growth is not possible without strong support for agriculture,' he emphasised. Jawad also called for the implementation of new seed varieties developed by the Pakistan Agricultural Research Council (PARC) at the district level. 'Farmers are unaware of the latest research being carried out in Islamabad. It needs to be transferred to the grassroots through local agriculture departments,' he said. The government must take concrete steps to reduce the cost of cultivation. Fertiliser prices should also be brought down by offering tax relief, added Jawad. Copyright Business Recorder, 2025
Express Tribune
3 days ago
- Business
- Express Tribune
PBF urges budget relief for agriculture
Listen to article The Pakistan Business Forum (PBF) has urged the government to take concrete measures in the upcoming federal budget to reduce the cost of agricultural cultivation, calling for immediate tax relief on fertilisers to ease the financial burden on farmers. A PBF delegation, led by Chief Organiser Chaudhry Ahmad Jawad, held a detailed meeting with Federal Minister for National Food Security Rana Tanveer Hussain to discuss the upcoming federal budget and advocate for targeted relief for the agricultural sector. The delegation emphasised that the federal government still holds the authority to reduce the cost of production for farmers. "Sustainable GDP growth is not possible without government support for agriculture," they stated. The delegation urged the government to eliminate the 18% GST on locally produced cotton and to reduce customs duties on imported machinery used in the cotton ginning sector. "The government must take concrete steps to reduce the cost of cultivation. Fertiliser prices should also be brought down by offering tax relief," they added. In response, Hussain expressed agreement with the forum's concerns and stated, "The ministry is actively working on eliminating the 18% GST on local cotton, including lint and cottonseed." He further noted that efforts are underway to resolve pending cotton cess liabilities from the textile sector to ensure the Central Cotton Committee does not face financial constraints. "We are also considering limiting tax-free imports of yarn and fabric under the Export Facilitation Scheme to support local cotton," said the minister. "This year, we are aiming to produce 10 million cotton bales locally, and we are making every effort to ensure that farmers receive relief in the upcoming budget." PBF also recommended that new research and seed varieties developed by the Pakistan Agricultural Research Council (PARC) be implemented at the district level through local agriculture departments. "At present, we are unaware of the latest research being conducted in Islamabad. The ministry should work with provincial governments to bridge this gap." PBF welcomed the government's decision to allow the import of cotton seeds and proposed that legislation be introduced to ensure local banks provide loans to the SME sector.
Express Tribune
3 days ago
- Business
- Express Tribune
Textile exporters sound alarm over tax, energy policies
Pakistan's leading garment and textile exporters have sounded alarm over the government's policies that they fear will cripple the vital export sectors, which will in turn lose a crucial opportunity to capture a larger pie of the global market. The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has vehemently opposed any move to impose 18% sales tax on exporters operating under the Export Facilitation Scheme (EFS). It warned that such a regressive tax measure would paralyse the garment export sector, stifle the essential cash flow and derail the chance for Pakistan to increase its presence in the global apparel market. The association expressed concern over what it described as a deliberate campaign by vested interests within the textile sector to weaken the country's most dynamic and value-added industry. PRGMEA Regional Chairman Dr Ayyazuddin stated that the EFS was not a luxury but a necessity for export-led growth, adding that the garment industry, being entirely export-oriented and positioned at the end of textile value chain, was already bearing the brunt of delayed refunds and multiple taxes. "Exporters pay sales tax upfront and wait for months to receive refunds; they often face a three-month delay, which severely hampers their cash flow and operational capacity," Ayyazuddin elaborated. He stressed that the imposition of additional taxes would prove disastrous as the garment industry was playing a critical role as Pakistan's biggest source of employment and foreign exchange, particularly at a time when global trade shifts were offering new opportunities. He warned that any restriction or levy on imported inputs, which are essential as 79% of the global textile market uses synthetic filament yarn, would push international buyers to divert orders to Pakistan's competitors like Bangladesh, Vietnam or Cambodia. Simultaneously, the Pakistan Hosiery Manufacturers Association (PHMA) called on the government to abolish the outdated peak and off-peak electricity tariff structure. In a letter sent to top government officials, the PHMA highlighted that the peak-hour surcharge policy was introduced to curb consumption during critical power shortages. However, the energy scenario has changed significantly, with Pakistan now having a surplus generation capacity and even exploring electricity exports. Under such circumstances, the PHMA argued, the rationale for maintaining peak and off-peak tariff differential has completely vanished. PHMA Zonal Chairman Abdul Hameed noted that exporters in the hosiery and textile sector, operating 24/7 to meet global deadlines, were struggling with competitiveness challenges due to high electricity charges during peak hours. Fluctuating tariffs force industries to change production schedules, reducing efficiency and increasing overall costs, which weakens Pakistan's position internationally. Hameed emphasised that the surplus power situation presents a clear opportunity for reform.
