April 27, 2025 (MLN): All Pakistan Textile Mills Association (APTMA) has called for immediate intervention of the Prime Minister of Pakistan to get highways cleared for movement of import and export cargos suspended since April 19, 2025.
In a press conference, Mr. Kamran Arshad, Chairman APTMA, highlighted that over 25,000 export containers are currently stranded, unable to reach ports due to paralysis in cargo movement across Sindh.
Similarly, about 50,000 containers carrying imported and local inputs and other cargos are stuck on the roads due to various road blockages in the province of Sindh.
The backlog, he warned, may take 20 to 25 days even if roads are cleared, significantly delaying both export shipments and critical import supplies needed for manufacturing.
He said that current position is like national crisis and needs immediate intervention, as per the press release.
Kamran said choking of supply chains is pushing industries into operational chaos. Export orders are at risk, production has slowed drastically, and the economy faces potential losses in the hundreds of millions of dollars.
This crisis not only damages Pakistan’s reputation in global markets but also poses a serious threat to our economy.
Kamran appealed to the Prime Minister of Pakistan, Chief Minister Sindh, and Mr. Bilawal Bhutto Zardari for their personal intervention to get the logistic crisis resolved.
Chairman APTMA also expressed deep concern over the anomalies in the Export Facilitation Scheme (EFS).
He pointed out that the withdrawal of sales tax exemptions on local supplies, while maintaining duty and tax-free status for imports, has created a severe imbalance in the textile value chain.
He said that this anomaly in EFS is devastating the domestic textile manufacturing base, particularly the spinning sector and cotton growing.
He informed that around 120 spinning mills representing 20-25% of yarn production and over 800 ginning factories have shut down mainly due to disparity in taxation structure on domestic and imports under EFS.
He continued that in wake of step-motherly treatment with the local industry, the remaining mills are also working at 50% capacity and may shutdown at any time. It will devastate the local industry and cause loss of million jobs.
He warned that closure of ginning and spinning mills at such a large scale, there would be no buyer for local cotton rendering cotton grower penniless.
The policy disparity, he noted, is forcing exporters to substitute local raw materials with imports, further weakening domestic industry.
The result is not only thousands of direct job losses but also a cascading impact on ancillary sectors and rural livelihoods.
He urged the government to restore the EFS to its June 30, 2024 position, with zero-rating/sales tax exemption on local supplies, or alternatively, impose equivalent taxes on imports to neutralize the disparity.
He also recommended excluding the import of yarn and cloth under EFS to protect domestic producers.
Mr. Asad Shafi, Chairman-North, speaking on the occasion, pointed out that a large number of export orders have been cancelled due to non-clearance of roads in Sindh and international buyers are moving to other suppliers from our competing economies.
Shafi added that if the current trajectory continues, Pakistan risks the deindustrialization and loss of export proceeds.
He demanded immediate corrective action to prevent irreversible damage.
Copyright Mettis Link News
Posted on: 2025-04-27T18:30:09+05:00
