Textile Millers Seek Competitive Electricity Tariff 

The newly elected Chairman of All Pakistan Textile Mills Association (APTMA) Kamran Arshad has urged policymakers to reduce electricity tariff and restore Regionally Competitive Energy Tariff (RCET) besides reversing the government policy of curtailing gas supply to captive consumers from January 1, 2025, and including local yarn supply in the Export Facilitation Scheme (EFS) scheme.  These measures will revitalize the textile sector, boost economic growth, and create employment opportunities, he added.   He was addressing the Annual General Meeting of the Association here at the APTMA office on Monday. He said the past year has been incredibly tough for Pakistan, marked by tight monetary policies, fiscal constraints, rising energy costs, and political uncertainty, all set against the backdrop of a global economic downturn. The textile sector, a significant contributor to the country’s economy, has been particularly hard hit.  He said the industry faced challenges of withdrawal of the RCET in 2023, dealing a severe blow to the industry, especially in Punjab. He mentioned misuse of the Export Facilitation Scheme (EFS) following the withdrawal of sales tax zero rating on local inputs through the Finance Act 2024 and 18 percent tax gap between local and imported inputs, leading to a surge in yarn imports.  According to him, the textile industry’s struggles have significant economic implications for Pakistan. The sector is a major employer and contributor to the country’s GDP. The current challenges threaten the industry’s viability and, in turn, the country’s economic stability. He said the textile industry has experienced remarkable growth over the past 15 years.