Commerce Minister assures textile sector of export facilitation

May 29, 2024 (MLN): Federal Commerce Minister Jam Kamal Khan has assured All Pakistan Textile Mills Association (APTMA) of facilitating the textile industry in export diversification, saying that measures are being devised to promote export-oriented industries in the country.

He was speaking to the export-oriented textile industrialists during his visit to APTMA Lahore office on Tuesday, said a press release issued on the same day.

The commerce minister highlighted the government’s determination to bring institutional and structural reforms, resolve energy and tariff issues, enhance regional connectivity, and diversify exports to ensure sustainable growth and stabilize the economy.

Federal Commerce Minister also appreciated the APTMA’s idea of modern industrial zones with plug and play facility, saying that it would be helpful in attracting Chinese investment ahead.

Speaking on the occasion, Patron-in-Chief APTMA Gohar Ejaz stressed on bringing the interest rate and electricity tariff down to ensure a level playing field for the industry.

He said the APTMA has proposed establishment of modern industrial zones dedicated to garment manufacturing offering state of the art infrastructure with plug and play facilities ensuring highest standards in security, amenities, hospitality, housing, etc., in the country.

He said garment manufacturing is less energy intensive and will pose no additional burden to grid.

According to him, the Punjab government has already conceptually approved this project and formed a committee headed by Provincial Minister for Industries.

APTMA is in close liaison of this committee. Chairman APTMA North Kamran Arshad made a detailed presentation on the state of affairs in the textile industry.

He urged the federal minister to bring power tariffs for industrial consumers to regionally competitive level of 9 cents/kWh by removing cross subsidy/stranded costs.

Also, he stressed on allowing B2B power contracts with use of System/Wheeling Charge of 1-1.5 cents/kWh, excluding cross subsidies and stranded costs.

He further proposed to increase cap on solar net-metering for industrial consumers from 1MW to 5MW.

He also stressed on restoration of zero rating, saying that more than two thirds of textile production is exported.

Present system of collecting sales tax at multiple stages like ginning, spinning, weaving, processing etc., causes tremendous financial liquidity and promotes fraudulent refunds through fake/flying invoices.

Refunds claimed are much higher than actual collection of sales tax.

He said sales tax should be collected only on the last stage of local supply of end products like made ups, garments, towels etc. ready for use by local consumers.

He also urged the federal minister to expedite payment of tax refunds besides extension of financial liquidity to the industry and proposed steps to promote export of MMF products.

It will promote product diversification and Pakistan will be able to gain handsome share in global MMF based market, he added.

Senior Vice Chairman APTMA Asad Shafi extended vote of thanks to the visiting federal minister.

A memento was also presented to him at the end of the meeting.

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