3 days ago
- Business
- Business Recorder
PPMA urges govt to prioritize tariff reforms & SME support in budget
ISLAMABAD: The Pakistan Plastic Manufacturers Association (PPMA), representing over 300 plastic manufacturers nationwide, has formally submitted its recommendations for the Federal Budget 2025–26 to the Federal Minister for Finance & Revenue, Muhammad Aurangzeb, as well as to other relevant ministries.
The proposals emphasize critical tariff rationalization, harmonization of SME definitions, improved access to finance, and streamlined tax compliance to foster inclusive industrial growth and enhance competitiveness.
In its submission, PPMA called for the removal of customs duties on raw materials not produced locally while advocating for a rationalized duty structure to protect domestic inputs.
The association highlighted discrepancies in SME definitions used by government bodies, urging alignment to reflect current economic realities and expand SME access to supportive policies. Addressing tax compliance challenges, PPMA recommended exempting small and medium manufacturers from complex filing requirements introduced recently, proposing a phased, size-based compliance system to ease burdens on SMEs.
Financing remains a significant hurdle, with PPMA advocating for subsidized working capital loans at 6% markup and flexible repayment terms. The association also urged reforms in collateral requirements, suggesting machinery-based financing and the creation of an online portal to enhance transparency and tracking of subsidized credit. To further strengthen SME creditworthiness, PPMA proposed establishing a publicly accessible electronic credit rating platform modelled on international best practices.
Additionally, PPMA recommended incentives for land acquisition and infrastructure development within Special Economic Zones and industrial parks, including subsidized land and long-term financing options.
Syed Nabeel Hashmi, Chairman PPMA, stated, 'The plastic manufacturing sector is a vital driver of industrial growth and employment in Pakistan. Our recommendations are designed to create a more enabling environment for SMEs, promote fair competition, and unlock new opportunities for innovation and export. We look forward to working closely with the government to ensure that the upcoming budget delivers meaningful support for sustainable economic progress.'
He reaffirmed PPMA's commitment to collaborating with the government to support sustainable economic development.
Copyright Business Recorder, 2025
