By SKM
March06, 2025
ISLAMABAD: The Textile Industry has urged the government to restore the Export Facilitation Scheme (EFS) to its June 2024 form, seeking to procure 35 percent gas from new domestic gas discoveries at the auctioned price. It also asked the government to reinstate zero rating on local supplies for exports.
The said demands All Pakistan Textile Mills Association placed in a meeting with Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb. The meeting was attended by senior officials, including the Chairman of the Federal Board of Revenue (FBR), the Secretary of the Commerce Division, and other senior officers from the Finance Division and FBR.
In the meeting, APTMA also asked the government functionaries to permit exporters to directly import LNG saying it can import and transport its own LNG through 3rd party access at ex-delivery price of $9/MMBtu. However, it said that there must be no levy, taxes, cross subsidies or other domestic inefficiencies like excessive un-accounted for gas (UFG) rates in the RLNG prices.
“The textile industry wants supply of RLNG at full cost without cross-subsidies and other extraneous costs (excessive UFG, etc). APTMA also asked the government to reduce industrial power tariff to 9 cents/kWh for all electricity supplied and remove Rs. 100 bn cross subsidy from industrial power tariffs,” a senior official who was part of the meeting told The News.
“In the meeting it also mentioned that incremental tariff of 8-9 cents/kWh will not lead to industrial recovery or growth in exports or power consumption since industry is currently at 60% of historical consumption and realizing incremental gains requires increasing to 100% and beyond that is neither feasible nor foreseeable. APTMA also asked for B2B power contracts with reasonable wheeling charge at Rs. 5/kWh cost-of-service, excluding legacy costs of the grid unrelated to B2B consumers.”
However, according to the press release, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has reiterated the government’s unwavering commitment to resolving critical issues related to taxation, energy, and financing, as part of its efforts to ensure the long-term viability and future growth of Pakistan’s industrial sector.
Earlier Senator Muhammad Aurangzeb and his team welcomed the APTMA office-bearers and expressed the government’s strong commitment to providing all possible support to the textile sector.
The Finance Minister assured the delegation that the government recognizes the critical role of the textile industry in Pakistan’s economy and remains dedicated to addressing its concerns.
He emphasized that addressing the core challenges faced by the industry is key to creating a conducive environment for industrial development, fostering economic stability, and supporting the nation’s overall growth trajectory.
Earlier, the APTMA delegation, led by Chairman Kamran Arshad, provided a detailed presentation on several pressing issues facing the textile sector related to energy, taxation and financing. The presentation also touched on various recommendations and proposals for the long-term viability and growth of the sector.
The Finance Minister assured the APTMA leadership that the government would give a thorough and thoughtful analysis of their recommendations, incorporating viable suggestions into the federal budget. He reiterated the importance of the consultative process and emphasized that any anomalies in the current framework would be addressed.
The APTMA delegation expressed their appreciation for the expedited disbursement of tax refunds and requested further support for the clearance of outstanding dues. The Finance Minister reaffirmed that the government values this consultative approach and would continue to engage with key sectors to ensure their concerns are addressed effectively in the upcoming budget. Ends
