PHMA makes pre-budget proposals, says industry ‘sinking’

FAISALABAD: Offering his pre-budget proposals, the senior vice chairman of Pakistan Hosiery Manufacturers and Exporters Association (PHMA), Ahmed Afzal Awan warned that the value-added textile sector is ‘sinking’ under severe financial and operational pressures.

He said if the government seriously evaluates and adopts the industry’s recommendations, it could help stabilise and revive one of Pakistan’s most critical export-driven sectors.

He said electricity tariffs should be capped at 9 cents/KWH and RLNG at 6.5USD MMBTU. Energy prices should be frozen for the next five years to ensure cost stability. Reinstate final/fixed tax regime (FTR) for all exporters/ exporting sectors from the normal tax regime (NTR). He asked to abolish super tax on exports reintroduce/ continue duty drawback of local taxes & levies (DLTL). He asked to maintain interest rates at single-digit levels, currently 11.50 percent.

He said high interest rates are detrimental to industrial growth and investment, adding that for sales tax, the restoration of zero rating is very important. This is essential to enhance the competitiveness of exports.

He proposed to announce a 5-year textile policy, developed in consultation with key stakeholders from the value-added textile sector and remain consistent across political regimes ensuring effective implementation of the textile policy genuine commitment and accountability are critical for the policy’s success.

Immediate processing of refunds, timely refunds of sales tax, customs rebates, income tax and DLTL are essential to prevent liquidity crises and ensure uninterrupted manufacturing operations, he said.

Awan further stated that approximately Rs327 billion in sales tax, income tax, customs rebates and duty drawback refunds are still outstanding, causing severe financial difficulties for exporters and badly affecting their working capital. He urged the government to immediately release all pending refunds to ensure uninterrupted industrial and export activities.

Arif Ahsan Malik, former Chairman APBUMA said industrialists have to deal with nearly 25 different government departments on a daily basis, creating unnecessary complications in business operations. He urged the government to establish a comprehensive and integrated digital portal through which all relevant official matters could be handled on a single platform. He further stated that the industry is already paying around 60% in taxes, yet additional financial burdens are continuously being imposed, making survival increasingly difficult.

PHMA group leader Chaudhry Salamat Ali said electricity tariffs should be reduced not only for industries but also for general consumers, as high electricity bills have severely affected both the public and the business community. He stated that the burden of payments to idle IPPs is also being shifted onto consumers, resulting in even higher electricity costs. He urged the government to significantly reduce electricity prices in the upcoming budget to provide relief to both the public and the industrial sector.

APTMA chairman Naveed Gulzar stated that the Punjab Government’s imposition of a 0.90 percent Punjab Infrastructure Development Cess on all imports and exports would place an additional burden on the industrial sector. He said such measures are increasing industrial costs and reducing export competitiveness.

Waheed Khaliq Ramay, Chairman Cotton Power Looms Owners Association, also demanded a reduction in electricity prices and heavy taxation, stating that the power looms sector is under severe financial pressure and requires an immediate relief package from the government.

Chaudhry Muhammad Nawaz, Chairman Cotton Power Looms Association, said that all proposals and demands had already been submitted to the government and expressed hope that serious consideration would be given to them in the upcoming federal budget.

Copyright Business Recorder, 2026