Latest news with #PakistanTextileCouncil
Business Recorder
24-05-2025
- Business
- Business Recorder
PTC says textile sector can add $3–4bn in export earnings
The Pakistan Textile Council (PTC), a not-for-profit research and advocacy platform, says that the industry could immediately contribute $3-4 billion in annual exports, in line with the vision and policies of the federal government, if an enabling environment is provided. The remarks were by PTC Chairman Fawad Anwar during his meeting with Federal Minister for Commerce Jam Kamal Khan. The PTC delegation also included Asif Tata (Chairman, Naveena Group) and CEO Muhammad H. Shafqaat, read a statement released by the Ministry of Commerce on Saturday. PTC says concerned at proposed amendments to EFS The meeting focused on tariff and tax rationalisation, energy pricing, green investments, and other policy interventions needed for competitiveness, sustainability and growth of the textiles and apparel sector. During the meeting, the commerce minister assured the delegation of the government's commitment to supporting the export sectors in the upcoming federal budget. 'We are working towards regional tariff parity,' Jam Kamal stated. The minister informed that a committee, led by Finance Minister Muhammad Aurangzeb, has been constituted to develop a sustainable framework for tariff rationalisation. 'We must strike a balance—reductions will come with time, however, the government is committed to supporting industrial growth,' he noted. Pakistan Textile Council voices concerns over proposed amendments to EFS Specific matters such as the regionally competitive energy tariffs, effective utilisation of the Export Development Fund, and the immediate clearance of claims under government support schemes were discussed. The PTC also recommended the introduction of Green Credit Schemes to help the sector meet international sustainability requirements and scale up the efforts towards industrial decarbonization. The delegation highlighted that much of the industry is already shifting to alternative renewable energy sources such as solar, biomass and wind, and the government support remains vital to maintain momentum. Kamal reiterated the government's resolve to align economic policy with the needs of exporters and underscored the urgency of reforms. 'Let the formal industry grow, invest and spur industrial growth. That's how the economy thrives.'
Business Recorder
22-05-2025
- Business
- Business Recorder
PTC submits budget proposals to PM
ISLAMABAD: The Pakistan Textile Council (PTC) has submitted its proposals to the Prime Minister for federal budget 2025-26 meant to enhance export competitiveness, stimulate economic growth, reduce IMF dependency, empower women and support SMEs. The proposals submitted to Finance Minister and FBR are as follows: (i) reintroduction of Regionally Competitive Energy Tariff (RCET) for gas and electricity. Freeze tariff for 3 years; (ii) remove cross-subsidies; (iii) abolish 0.25% EDF surcharge on export proceeds; (iv) reduce compliances, unify regulators (e.g., KPT, shipping agents), and establish new industrial zones with one-window operations; (v) for better utilization of funds from statutory contributions, EOBI, Social Security, Labour Department, Worker welfare fund may be merged as one window operation. Rate of contribution to these institutions may be revised and decreased; (v) as the inflation is low, any minimum wage increase should not be more than 5%. Concept of Min-wage may be revised as 'fair wage' defined as 60% basic pay plus allowances;(vi) over time limit may be revised with more flexible hours as four hours in a day without weekly limits. Rate of Overtime may be revised at 1.5 of ordinary rate of basic pay (60%) per hour; (vii) Final Tax Regime (FTR) may be reintroduced for exporters;(viii) advance Tax, should be abolished otherwise it should be based on the Tax assessed for previous year as is applicable to other corporate sectors;(viii) withdrawal of Super Tax on high earners;(ix) enhancing the limit for salary payable in cash to Rs 70,000/; (ix) restore initial depreciation allowance on plants and machinery to 50% and 25% for building;(x) investment tax credit - exporters be allowed to get refund of their tax credits if any amount of credit is unutilized; (xi) Minimum Tax be phased out for listed companies;(xii) Pakistan's corporate tax rate (29%) is above regional average and may be gradually reduced to 20%, prioritizing listed firms;(xiii) no fiscal incentives exist to support green or SDG-compliant investment. Targeted reliefs and incentives to be introduced; (xiv) reduction in Further Tax under section 3 (IA);(xv) extension in time Period for Input Tax Adjustment to 12 months as delayed receipt of invoices etc.;(xvi) joint liability of Registered persons in supply chain may be removed; (xvii) exemption of Listed Companies from Section 8B;(xviii) expediting process of sales tax refunds. For overruling of the sales tax deferred refunds, the required document must be highlighted in the system which can be traced from FBR system or attach scanned copies in the system to process the refunds at earliest; (xv) clear all pending refund claims to ease liquidity crisis of exporters to fully utilized potential of increasing textile exports by $ 3-4 billion per annum; (xvi) registration and Deregistration U/s 14 be expedited and be done within a week from date of filing of application; (xvii) revision of Sales Tax Return - IRIS system may be modified in accordance with the sub sections (3) and (4) to Section 26 of the Sales Tax Act, 1990 to allow registered persons to file revised return along with tax and surcharge without seeking prior approval of the commissioner; (xviii) curtailing discretionary powers of tax officers: section 37 and section 38 may be suitably amended and prior approval of the Board be required before initiating proceedings against registered persons who are on the Active Tax Payers List; (xix) Section 37A of Sales Tax Act 1990 be amended in line with Supreme Court of Pakistan's judgement dated 4-12-2024 in case No 17653/24 which says that the power to arrest and prosecute is part of criminal proceedings and cannot be done till determination of civil liability;(xx) accessing of accounts & records should be limited to once a year as per Section 25, and audit should be conducted after scope, guidelines and mechanism of audit are provided for in Law;(xxi) 40B and 40C may be eliminated to minimize chances of corruption and direct contact between taxpayer and tax collector or only be done after completion of due process of law, including issuance of show cause notice; (xxii) restore EFS to its pre-Finance Act 2024 form, including the sales tax exemption/zero-rating on all local supplies used for export manufacturing;(xxiii) abolish 5% withholding tax on purchases by export companies; (xxiv) expand the existing 25% tax reduction policy (currently for 100% women-owned businesses) to businesses where women own less than 50% and 25% of the workforce are women; (xxiv) withdrawal of Custom Duty on industrial spare parts; (xxv) net value of product: It is proposed that custom duty may be charged at net transactional value of product. Cost of insurance, freight, port handling charges etc. may not be included in value;(xxvi) reduce dwell time at customs stations; (xxvii) use FOB for Tax purposes-Reduce input costs; (xxviii) restore Duty Drawback of Taxes (DDT) & DLTL as per Textile Policy 2020–2025; include in new 2025–2030 policy. Provide funds in the budget to clear all outstanding claims; (xxix) allocation for Export Finance Scheme (EFS) and Long-Term Financing Facility (LTFF) be enhanced and building infrastructure also be included in LTFF; (xxx) allocation for Trade/ Export Credit Insurance be enhanced and services be provided at low premium by EXIM bank along with credit against shipped goods. Strengthening EXIM Bank and funds be allocated to it to offer capital finance at 4–5% for 5–10 years, with SME-specific allocations; (xxxi) allow back-to-back Letters of Credit (LCs) for exporters; enhance SBP oversight on commercial banks; (xxxii) extend Technology Upgradation Fund (TUF) scheme till 2025 and release pending claims from 2009; and (xxxiii) interest free loans for green / sustainable technology, wastewater plants, and effluent treatment plants/machinery be provided. Copyright Business Recorder, 2025
Business Recorder
25-04-2025
- Business
- Business Recorder
Transporters' strike: PTC writes letter to PM
ISLAMABAD: The Pakistan Textile Council (PTC) has requested Prime Minister of Pakistan, Shehbaz Sharif, for immediate action to address the ongoing transporters' strike that has severely disrupted national trade logistics and industrial supply chains, particularly at Karachi's key ports. In a letter to Prime Minister Shehbaz Sharif, the PTC has raised alarm over the escalating impact of the strike, which has halted cargo movement at Karachi Port, Port Qasim, and associated terminals. The disruption has resulted in over 10,000 daily cargo movements being suspended, creating severe congestion at ports and interrupting the flow of raw materials and export consignments. The letter cites reports of unlawful interference by elements of the Transporters' Union, including harassment of truck drivers, forced removal of gate passes, and vandalism of vehicles. This lawlessness, according to PTC, has created an atmosphere of insecurity and has compromised constitutionally protected commercial activity. 'This is not just a logistics crisis — it's a national trade emergency,' said Fawad Anwar, Chairman of the Pakistan Textile Council. 'The PTC member companies have high-value export consignments at risk of default, and containers of imported materials stranded at ports. The financial and reputational losses could be catastrophic if swift action is not taken.' The Council, whose membership represents around 30% of Pakistan's textile exports, has urged the Prime Minister to direct provincial authorities, law enforcement agencies, port authorities, and the Ministry of Maritime Affairs to take immediate steps to: (i) restore order and provide security for lawful transport operations; (ii) coordinate with industry and inter-agency forums to resolve the deadlock; and (iii) ensure uninterrupted functioning of national logistics and port activities. The PTC reiterated its readiness to work closely with government authorities to support the restoration of order and ensure continuity in Pakistan's export performance, especially at a time when global market competitiveness is already under pressure. Copyright Business Recorder, 2025
