‘Textile exporters being squeezed by regulatory burdens, energy costs’: APTMA

ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) on Wednesday warned the government that surging input and energy costs, mounting regulatory burdens and shifting global market dynamics are squeezing textile exporters.

The association cautioned that the sector’s competitiveness, export growth, and jobs creation are under serious threats without stable and supportive policy framework.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, along with Federal Minister for Petroleum Ali Pervaiz Malik, held a meeting on Wednesday with a delegation of the APTMA and assured the industry of the government’s continued engagement to address key challenges facing the textile sector.

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APTMA delegation briefed the ministers on the prevailing situation of the textile sector and highlighted the pressures being faced by exporters in an increasingly competitive global environment.

The delegation noted that changing international market dynamics and rising input costs have created challenges for the sector and underscored the need for a supportive and stable operating framework to sustain export growth and employment.

The delegation also drew attention to issues related to energy costs, regulatory compliance and taxation, noting that cumulative cost pressures affect competitiveness in export markets.

The need for consistency in policies, timely resolution of operational issues and continued dialogue with the Government was emphasized to enable the industry to plan and invest with confidence.

APTMA delegation presented a number of demands to the ministers, focusing on restoring industrial competitiveness and export viability. They called for regionally competitive power tariffs of 8–9 cents/kWh, compared to the current 13 cents/kWh, and demanded removal of Rs. 102 billion in cross-subsidies on industrial power.

APTMA urged replacing the outdated Time-of-Use (ToU) regime with a single 24-hour tariff for B3/B4 consumers to improve capacity utilization, stabilize industrial operations, and discourage off-grid migration.

The delegation highlighted power shortages in LIEDA, seeking exemption from the captive power levy until grid supply meets demand, and clearance of RCET differential payments for verified zero-rated industries.

APTMA also flagged miscalculation in OGRA’s RLNG price actualization (2015–22), estimating an industry overcharge of USD 260–442 million, and demanded transparent recalculation and suspension of recoveries.

They called for recalculation of the captive power levy using lawful methodology, removal of legacy costs from wheeling charges, and reforms to Pakistan’s 18% sales tax structure, proposing a graduated tax regime to ease liquidity pressures.

APTMA demanded restoration of the 1% fixed tax regime for exporters, reduction of minimum turnover tax to 0.5%, single-digit interest rates, and immediate safeguards for domestic spinning and weaving sectors against rising imports, particularly from China.

During the meeting, the Ministers emphasized that the textile industry remains a cornerstone of Pakistan’s economy due to its significant contribution to exports, employment and industrial activity, and reiterated the Government’s resolve to support its sustainability within the broader economic reform framework.

The Ministers further reaffirmed the government’s commitment to maintaining a fair and predictable policy environment for businesses, highlighting the importance of equity, transparency and broad-based participation across the economy. It was emphasized that efforts are underway to address genuine concerns of compliant sectors, while advancing structural reforms through consultation and institutional processes.

The Finance Minister acknowledged the concerns raised by the delegation and stated that the Government is actively reviewing various issues affecting the cost of doing business for export-oriented industries.

He noted that energy affordability and reliability remain important priorities and that relevant options are being examined in consultation with concerned ministries and stakeholders to improve efficiency and competitiveness, while ensuring fiscal responsibility and system sustainability.

Aurangzeb underlined that reforms in the energy sector are being pursued in a balanced manner to support industrial productivity and protect the long-term interests of the national economy.

He noted that immediate issues requiring attention are being reviewed on priority, while broader policy matters would be taken forward through established budgetary and reform mechanisms.

Copyright Business Recorder, 2026