LAHORE: Pakistan’s textile industry has warned the Punjab government that a new infrastructure levy on imports will drive up production costs, hurt exports and deter investment in the province.
The All Pakistan Textile Mills Association (APTMA) has asked Chief Minister Punjab Maryam Nawaz Sharif to suspend the Punjab Infrastructure Development Cess on industrial imports.
In a letter dated October 9, 2026, APTMA Chairman AsadShafi objected to the 0.90 per cent cess on imports carrying a Punjab address, regardless of whether the goods are cleared through ports in other provinces.
The association cited an announcement by Pakistan Single Window (PSW), sent by email on October 1, 2026. It said the levy would add to the burden on Punjab manufacturers, who are already contending with high energy tariffs, financing costs, taxation and weak demand.
Shafi said the cess would raise the cost of raw materials, industrial inputs and machinery for manufacturers operating in Punjab or holding registered offices there.
He was particularly critical of the levy on goods cleared through Sindh’s ports, which already attract the Sindh Infrastructure Cess at the point of entry. Charging the Punjab cess on the same goods, he argued, amounts to double taxation and puts Punjab industries at a disadvantage against manufacturers in other provinces.
APTMA said the measure could also discourage industrialisation in Punjab by raising the cost of doing business and creating disparities between provinces.
Export-oriented industries, especially textiles, would be among the hardest hit, the association warned. Punjab’s mills depend on imported cotton, man-made fibres, dyes, chemicals, spare parts and machinery to keep production going and meet export commitments.
Shafi said any added levy on these inputs would raise costs across the textile value chain, squeeze margins and weaken the competitiveness of Pakistani exporters, making it harder for textile and apparel firms to retain international buyers.
He said the cess runs counter to the government’s stated goals of boosting exports, reviving industrial activity and attracting investment.
APTMA has urged the chief minister to intervene urgently, and called on the provincial government to halt collection of the levy through Pakistan Single Window until proper consultations are held with industry representatives and chambers of commerce.
The association has also requested an early meeting with Maryam Nawaz to explain how the measure could affect Punjab’s textile industry and its textile and apparel exports.
APTMA said a review of the levy is necessary to prevent additional costs for manufacturers, protect export competitiveness and maintain a level playing field for industries nationwide.
Copyright Business Recorder, 2026
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