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Business Recorder
24-06-2025
- Business
- Business Recorder
Textile industry: PHMA, PRGMEA for implementation of budget proposals through FBR's body
LAHORE: The Pakistan Hosiery Manufacturers & Exporters Association (PHMA) and the Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) on Monday urged the government to consider and implement the textile industry's key budget proposals through the FBR's Budget Anomaly Committee. The demand came during a post-budget joint meeting of both associations, which was attended by PHMA Chairman Abdul Hameed, PHMA former chairmen Naseer Butt and Shehzad Azam Khan, PRGMEA Chairman Dr Ayyazuddin, and PRGMEA former chairmen Ijaz Khokhar and Sohail Afzal Sheikh. It was clarified that these are proposals from the textile export sector currently being submitted to the committee for review. The participants stressed that the government must not only examine these industry recommendations through the Anomaly Committee process but also implement the committee's final report once compiled. While addressing the meeting, PHMA Chairman Abdul Hameed pointed out that Pakistan's value-added textile, apparel, bedwear, home textile, and towel sectors contribute over $11 billion in annual exports and provide livelihoods to millions. He expressed concern over the replacement of the simplified Final Tax Regime (FTR) with the more complex Normal Tax Regime (NTR), which now subjects exporters to both a 1% minimum tax and a 1% advance tax on export proceeds —regardless of actual profit. PHMA former chairman Naseer Butt, while speaking at the meeting, said that this dual taxation is counterproductive for an already distressed export sector. He warned that many SMEs are operating on thin margins and may be forced to close down if this policy is not reversed immediately. PHMA former chairman Shehzad Azam Khan highlighted the issues of refund delays, rising production costs, and inflation. He stressed that exporters are burdened with more taxes than their earnings, and demanded that the government urgently facilitate timely refunds and provide stable energy pricing. PRGMEA Chairman Dr Ayyazuddin, in his address, raised concerns over changes to the Export Facilitation Scheme (EFS), particularly the removal of zero-rating on local purchases and the imposition of sales tax on imported cotton yarn. He emphasised that these changes undermine the very objective of the EFS, which was introduced to reduce liquidity pressure and digitize export procedures. PRGMEA former chairman Ijaz Khokhar said that Pakistan's regional competitors like Bangladesh and Vietnam provide tax-free access to raw materials for exporters, giving them an edge in international markets. He called for restoring the original EFS framework under SRO 957(I)/2021, which allowed zero-rated invoicing on local inputs and exempted key materials from sales tax at the import stage. PRGMEA former chairman Sohail Afzal Sheikh demanded the immediate restoration of Regionally Competitive Energy Tariffs (RCET), which were earlier suspended. He noted that the discontinuation of RCET has led to high manufacturing costs and forced many SME exporters to scale down or shut operations. He also called for the revival of Duty Drawback on Local Taxes and Levies (DLTL) under the Textile & Apparel Policy 2025–30 and the release of long-pending DLTL and Technology Upgradation Fund (TUF) claims stuck with the State Bank of Pakistan. All participants in the meeting stressed that further burdening exporters with complex taxation, refund issues, and high input costs will shrink the country's export base and push more businesses out of the formal economy. They emphasized that the textile sector is the backbone of Pakistan's economy and requires urgent policy support. PHMA Chairman Abdul Hameed urged Prime Minister Shehbaz Sharif, Finance Minister Muhammad Aurangzeb, and Commerce Minister Jam Kamal to intervene personally and ensure the textile sector's proposals are properly addressed. He said the industry remains committed to cooperation, but warned that failure to implement the Anomaly Committee's recommendations could lead to irreversible losses in exports, jobs, and global market share. Copyright Business Recorder, 2025
Express Tribune
22-06-2025
- Business
- Express Tribune
Textile industry for adopting proposals
Listen to article Pakistan Hosiery Manufacturers and Exporters Association (PHMA) and Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) have jointly urged the government to consider and implement the textile industry's key budget proposals through the Federal Board of Revenue's (FBR) budget anomaly committee. The demand came during a post-budget meeting of both associations, which was attended by PHMA Chairman Abdul Hameed, former PHMA chairmen Naseer Butt and Shehzad Azam Khan, PRGMEA Chairman Dr Ayyazuddin and former PRGMEA chairmen Ijaz Khokhar and Sohail Afzal Sheikh. Meeting participants stressed that the government must not only examine industry recommendations through the anomaly committee but also implement the committee's final report once compiled. PHMA Chairman Abdul Hameed pointed out that Pakistan's value-added textile, apparel, bed wear, home textile and towel sectors contribute over $11 billion in annual exports and provide livelihoods to millions. He expressed concern over the replacement of the simplified Final Tax Regime (FTR) with the more complex Normal Tax Regime (NTR), which now subjects exporters to both 1% minimum tax and 1% advance tax on export proceeds, regardless of the actual profit. Former PHMA chairman Naseer Butt, while speaking at the meeting, said that dual taxation was counterproductive for an already distressed export sector. He warned that many small and medium enterprises (SMEs) were operating on thin margins and may be forced to close down if the policy was not reversed immediately. Shehzad Azam Khan, also a former PHMA chairman, highlighted the issues of refund delays, rising production costs and inflation. He stressed that exporters were burdened with more taxes than their earnings and demanded that the government urgently facilitate timely refunds and ensure stable energy pricing. PRGMEA Chairman Dr Ayyazuddin, in his remarks, raised concerns over changes to the Export Facilitation Scheme (EFS), particularly the removal of zero-rating on local purchases and the imposition of sales tax on imported cotton yarn. He emphasised that these changes undermine the very objective of the EFS, which was introduced to reduce liquidity pressure and digitise export procedures. Ex-PRGMEA chairman Ijaz Khokhar said that Pakistan's regional competitors like Bangladesh and Vietnam provide tax-free access to raw material for exporters, giving them an edge in international markets. He called for restoring the original EFS framework under SRO 957(I)/2021.
Business Recorder
18-06-2025
- Business
- Business Recorder
Export-oriented sectors on the brink, PRGMEA tells PM
LAHORE: Pakistan's $11 billion value-added export-oriented industry —contributing nearly one-third of the country's total exports — has issued a strong SOS appeal to Prime Minister Shehbaz Sharif, warning that recent budgetary measures are set to derail the export-oriented sectors at a critical time. In a joint statement, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), in collaboration with the top export-oriented associations including PHMA, SIMAP, PSGMEA, PGMEA, PLGMEA, PCSUMEA and Sialkot Chamber of Commerce, demanded the immediate revival of the Final Tax Regime (FTR) and restoration of the Export Facilitation Scheme (EFS) to its original structure. The appeal was endorsed by industry stalwarts including PRGMEA Chairman Dr Muhammad Ayyaz Uddin and former Central Chairman Sohail A Sheikh, Sialkot Chamber of Commerce and Industry (SCCI) President Ikram ul Haq, PSGMEA Chairman Khawaja Masud Akhtar — whose company's footballs are used in FIFA World Cup tournaments — SIMAP Chairman Zeeshan Tariq, PLGMEA Chairman Syed Ahtisham Mazhar, PHMA Chairman Abdul Hameed and former chairman Khawaja Mushraf, PGMEA Chairman Annas Raheel Barlas, PCSUMEA Chairman Muhammad Jamal Bhutta, Majid Bhutta, Ansar Aziz Puri, Sheikh Luqman Amin and other prominent exporters and business leaders. They expressed deep concern that despite government slogan of 'export-led growth,' the reality on the ground is entirely opposite. The Government always talks about promoting exports, but in practice, no department seems to be on board. They pointed out that in the entire budget speech, the finance minister uttered the word 'export' only once — and that too in a negative context while imposing duties on imported yarn under EFS. Addressing the Prime Minister directly, the joint statement said: 'Honourable Prime Minister, we urge you to intervene immediately. Please convene an emergent meeting with the leading export associations and the Sialkot Chamber before this budget is passed. If this situation persists, Pakistan's most reliable foreign exchange earning sector will suffer irreparable damage.' They stressed that in such a policy environment, the government's vision 'URAAN PAKISTAN' of taking exports to $100 billion is simply not possible. The industry leaders were clear: 'We're not asking subsidies, exemptions, or special treatment—just a level playing field to compete globally. Unfortunately, the current policies have drastically raised the cost of doing business and severely impacted ease of doing business. Work must begin on a war footing to restore confidence and streamline processes. International buyers are actively seeking long-term clarity and stability in the EFS framework, as Pakistan stands at a strategic moment to attract business being diverted from China. This opportunity must not be missed. They said the abolition of FTR and the breakdown of EFS have created chaos in the industry. The Final Tax Regime, which once offered a simple and predictable tax mechanism, has now been replaced by complex procedures, audits, and refund hurdles, particularly hurting small and medium (SMEs) exporters. Meanwhile, the EFS—once a vital mechanism for importing essential raw materials not produced locally, or required by buyers to use their nominated suppliers to meet international quality standards, such as specialized materials and technical fabrics — has been bogged down by unnecessary conditions, limiting access to critical inputs and undermining export competitiveness. Business leaders emphasize that it is time for Pakistan to strategically move beyond cotton and adopt a more diversified, innovation-driven approach to value-added apparel exports. Copyright Business Recorder, 2025
Business Recorder
17-06-2025
- Business
- Business Recorder
Pakistan's exporters urge PM to save value-added industry, seek FTR removal, EFS restoration
Pakistan's $11 billion value-added export-oriented industry—contributing nearly one-third of the country's total exports—has issued a strong SOS appeal to Prime Minister Shehbaz Sharif, warning that recent budgetary measures are set to derail the export-oriented sectors at a critical time. In a joint statement, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), in collaboration with the top export-oriented associations including PHMA, SIMAP, PSGMEA, PGMEA, PLGMEA, PCSUMEA and Sialkot Chamber of Commerce and Industry (SCCI), demanded the immediate revival of the Final Tax Regime (FTR) and restoration of the Export Facilitation Scheme (EFS) to its original structure. The appeal was endorsed by industry stalwarts including PRGMEA Chairman Dr Muhammad Ayyaz Uddin and former Central Chairman Sohail A. Sheikh, Sialkot Chamber of Commerce and Industry (SCCI) President Ikram ul Haq, PSGMEA Chairman Khawaja Masud Akhtar—whose company's footballs are used in FIFA World Cup tournaments — SIMAP Chairman Zeeshan Tariq, PLGMEA Chairman Syed Ahtisham Mazhar, PHMA Chairman Abdul Hameed and former chairman Khawaja Mushraf, PGMEA Chairman Annas Raheel Barlas, PCSUMEA Chairman Muhammad Jamal Bhutta, Majid Bhutta, Ansar Aziz Puri, Sheikh Luqman Amin and other prominent exporters and business leaders. The associations expressed deep concern that despite the government's slogan of 'export-led growth,' the reality on the ground is opposite. They pointed out that in the entire budget speech, the finance minister uttered the word 'export' only once, and that too in a negative context while imposing duties on imported yarn under EFS. Addressing the prime minister, the association urged the premier to convene an emergency meeting with the leading export associations and the SCCI before the budget is passed. 'If this situation persists, Pakistan's most reliable foreign exchange-earning sector will suffer irreparable damage.' They stressed that in such a policy environment, the government's vision of taking the country's exports to $100 billion is 'simply not possible'. 'We're not asking subsidies, exemptions, or special treatment—just a level playing field to compete globally. Unfortunately, the current policies have drastically raised the cost of doing business and severely impacted the ease of doing business,' the export associations stated. They said that international buyers are actively seeking long-term clarity and stability in the EFS framework, as Pakistan stands at a strategic moment to attract business being diverted from China. The exporters further said that the abolition of FTR and the breakdown of EFS have created chaos in the industry. 'The FTR, which once offered a simple and predictable tax mechanism, has now been replaced by complex procedures, audits, and refund hurdles, particularly hurting small and medium-sized (SMEs) exporters. 'Meanwhile, the EFS has been bogged down by unnecessary conditions, limiting access to critical inputs and undermining export competitiveness. Business leaders emphasise that it is time for Pakistan to strategically move beyond cotton and adopt a more diversified, innovation-driven approach to value-added apparel exports,' it added.
Business Recorder
07-06-2025
- Business
- Business Recorder
PRGMEA seeks targeted policy support in budget
KARACHI: In an urgent appeal to the government, the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has called for targeted policy support in the upcoming budget to address pressing challenges facing the country's value-added textile export sector. The association also urged the full and proper restoration of the Export Facilitation Scheme (EFS) and the Final Tax Regime (FTR). Representing a $4.9 billion export segment, the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has submitted a detailed communication to Prime Minister Shehbaz Sharif and Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production. In the letter, on behalf of PRGMEA, former Chairman Ijaz A Khokhar has highlighted six critical areas requiring urgent intervention: reinstatement of the EFS, restoration of the FTR, engagement on high US tariffs, clearance of refund backlogs, preparedness for the GSP+ review, and the launch of a national branding campaign to promote 'Made in Pakistan' garments. $60bn exports by 2029 target unachievable: MoC Khokhar also outlined a set of strategic policy recommendations aimed at restoring the sector's competitiveness, streamlining tax and refund mechanisms, and positioning Pakistan to benefit from evolving global trade trends He warned that without timely and targeted reforms, Pakistan risks losing its competitive edge at a time when global apparel buyers are diversifying away from traditional sourcing hubs, presenting a rare opportunity for local exporters. He has emphasized that continuity in policy, lower costs of doing business, and SME-focused facilitation is essential to unlocking the sector's true potential and advancing the Prime Minister's vision of achieving $100 billion in exports. PRGMEA urged the government to fully restore the original EFS framework, ensuring it remains a practical and enabling tool for the exporters. The recent changes in this scheme are highly restrictive and counterproductive, particularly for SMEs operating under Just-in-Time (JIT) and Never Out of Stock (NOS) export business models that require longer lead times and flexible inventory management, he added. Moreover, he suggested that any addition of sales tax within the EFS framework must be avoided, as it risks double taxation and imposes unnecessary financial and administrative burdens on exporters. Khokhar said that the demand by a sub-sector to exclude fabric and yarn from the EFS is not justified, particularly when it comes to technical and functional materials that are not produced locally as per international standards. In many cases, exporters are obligated to source specific fabrics or yarns from buyer-nominated suppliers to meet international quality and compliance standards, he mentioned. Restricting such imports under EFS would severely impact the competitiveness and operational viability of Pakistan's value-added apparel exporters. PRGMEA recommends that the EFS be reinstated in its original true letter and spirit, so that Pakistan's value-added textile industry can operate competitively, reliably, and sustainably in the global market. PRGMEA has urged the government to restore the FTR to simplify tax compliance, eliminate redundant audits, and improve the overall ease of doing business particularly for SMEs. PRGMEA recommends that the government, immediately engage US trade authorities to review the reciprocal tariff and advocate for GSP-like tariff relief or ESG-linked concessions for sustainably produced garments. Khokhar has strongly urged the government to implement a fully automated, time-bound refund mechanism to ensure uninterrupted cash flow for exporters as delays in the disbursement of sales tax refunds and customs rebates continue to create severe liquidity constraints, particularly for SMEs operating on tight margins. To expand Pakistan's global footprint, Khokhar has urged the Ministry of Commerce to launch a robust marketing and branding campaign for 'Made in Pakistan' garments. Trade fairs, B2B matchmaking, and digital outreach through embassies should be part of this drive, he added. Without concrete reforms, policy continuity, and timely facilitation, the true potential of this sector and its contribution toward national export targets will remain unrealized, he concluded. Copyright Business Recorder, 2025
