Latest news with #APTMA
Business Recorder
2 days ago
- Business
- Business Recorder
Weekly Cotton Review: Mixed trend persists on improved trading
KARACHI: The cotton market witnessed a mixed trend. Trading activities showed improvement. The spot rate recorded a decline of Rs 200 per maund. In the recent budget, the government has fulfilled the long-standing demand of APTMA by discontinuing the Export Facilitation Scheme (EFS) on imported cotton, yarn, and fabric. This move has provided a level playing field for the local industry to compete internationally, earning appreciation from industrial circles. Recent rains in Sindh and Punjab have led to the partial closure of ginning factories, affecting production activities. However, experts suggest that while the rainfall will benefit the cotton crop, standing water in the fields could pose a risk of damage. Earlier, the crop had already suffered due to extreme heat, prompting farmers to remain vigilant about weather fluctuations. On another front, discussions were held between the leadership of China and APTMA to promote bilateral trade. Both sides emphasized maximizing benefits from the Free Trade Agreement (FTA) to further strengthen trade relations between the two countries. Joint measures in this regard are currently under consideration. Sohail Talat, Chairman of the Pakistan Business Forum (PBF) and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has demanded the revival of the cotton industry in South Punjab. He declared that the struggle to eliminate taxes on cotton would continue until the government meets their demands. Ahsan-ul-Haq, Chairman of the Ginners Forum, stated that Pakistan's agriculture sector, particularly cotton crops, is facing severe damage due to the inefficiencies of the Meteorological Department. He emphasized the need for better weather forecasting and policy interventions to protect farmers' livelihoods. The Pakistan Cotton Ginners Association (PCGA) had demanded the removal of taxes on Khal and Banola, but the government has yet to take action. This delay has caused significant unrest among cotton growers, who are already struggling with financial and operational challenges. The local cotton market witnessed mixed trends in cotton prices over the past week. While prices in Sindh remained relatively weak, the Karachi Cotton Association's Spot Rate Committee reduced the spot rate by PKR 200 per maund, closing it at PKR 16,300 per maund. The supply of phutti (seed cotton) increased in both Sindh and Punjab, leading to the resumption of operations in several ginning factories. However, due to the distribution of phutti among a larger number of factories, many are operating only partially. The recent rains in Sindh and Punjab have discouraged ginners from purchasing large quantities of phutti, which is expected to disrupt the arrival of phutti and affect cotton quality. The government has discontinued the Export Facilitation Scheme (EFS) for cotton, yarn, and fabric in the budget and imposed an 18% sales tax on imported cotton, yarn, and fabric. This fulfills APTMA's long-standing demand for a level playing field, which is expected to benefit cotton farmers and encourage textile mills to purchase local cotton, thereby boosting domestic trade. According to a report, the sales tax on imported cotton, yarn, and fabric—as well as local cotton—may be reduced from 18% to 10%. However, confirmation of this news will only be possible after the official notification is issued. Meanwhile, the Pakistan Cotton Ginners Association (PCGA) remains concerned as its demand for the removal of taxes on cotton by-products, such as cottonseed oil and cake, has not been met. The Pakistan Kissan Ittehad has also raised its concerns and urged the government to address PCGA's demands. Sohail Talat, Chairman of the Pakistan Businesses Forum (PBF) and FPCCI, emphasized that the struggle to eliminate taxes on cotton will continue until the demands are met. The rate of cotton in Sindh is in between Rs16,200 to Rs 16,500 per maund, while the rate of phutti is in between Rs 7,500 to Rs 8,200 per 40 kg. In Punjab, cotton prices stood at Rs 16,700 to Rs 16,800 per maund. The rate of Phutti is in between Rs 7,800 to Rs 8,400 per 40 kg. However, prices of Banola have declined. The Spot Rate Committee of the Karachi Cotton Association reduced the spot rate by Rs 200 per maund, closing it at Rs 16,300 per maund. Karachi Cotton Brokers Forum Chairman Naseem Usman said that international cotton prices showed a mixed trend, with New York cotton futures trading between 66.00 to 69.00 cents per pound. According to the USDA's weekly production and sales report, 27,300 bales were sold for the 2024-25 season. Pakistan remained the top buyer, purchasing 9,200 bales, followed by Vietnam with 7,700 bales, and Japan in third place with 2,500 bales. For the 2025-26 season, sales reached 64,700 bales. Vietnam led with 34,300 bales, followed by El Salvador with 15,300 bales, and Malaysia in third place with 8,000 bales. Chinese Consulate General and All Pakistan Textile Mills Association (APTMA) leadership have resolved to upsurge bilateral trade, take maximum advantage of Free Trade Agreement (FTA) and to explore possibilities of joint ventures in textile industry. Zhao Shiren Consul General of China, Li Haoteng, Commercial Counsellor and Wang Yaqiang, Vice Consul visited APTMA office on Tuesday and discussed in detail prospects, ways and means to increase volume of trade and joint ventures in textile industry. Dr Gohar Ejaz, Patron-in-Chief APTMA and Chairman APTMA Kamran Arshad welcomed the Chinese Consul General at APTMA. They were accompanied by Syed Ali Ahsan, former Chairman APTMA, Zonal Management Committee members including Haroon Ellahi, Muhammad Ali, Faisal Jawed, Ahsan Shahid, Ismail Fareed, Habib Anwar, leading textile exporters, Secretary General APTMA Shahid Sattar and Secretary General North Mohammad Raza Baqir. Speaking on the occasion, Zhao Shiren said both China and Pakistan enjoy strong economic and cultural relations and China Pakistan Economic Corridor (CPEC) is an example of this robust relationship between both the countries. He highly appreciated the role of APTMA in general and of Dr Gohar Ejaz in particular in expansion of bilateral economic relations. He enumerated highly plausible services rendered by Dr Gohar Ejaz in cementing relation between China and Pakistan not only as Commerce Minister but also in his private capacity. He also spoke volume about community and welfare services being performed by Gohar Ejaz Foundation for poverty alleviation, medical services, educational and research uplift and industrialization of the country. Consul General highlighted expansion of bilateral trade since the signing of China-Pakistan Free Trade Agreement (FTA) in 2006 and resolved to further uplift the said volume by taking maximum benefits from FTA. He noted that balance of trade is presently in favour of China and assured of his help to not only expand trade volume but also to bridge the gap in balance of trade. He informed that textile goods falling in more than 800 HS tariff lines of customs chapters 50 to 63 enjoy duty free status under FTA on import into China from Pakistan. He emphasised Pakistani textile industry to avail duty free regime widely liberalized for Pakistani textile products since implementation of Phase II of FTA in 2020. According to reports, cotton has been cultivated on 3.128 million acres in Punjab and 1.005 million acres in Sindh. The expected yield per acre is estimated at 170 kg. Punjab is projected to produce 4.898 million bales, while Sindh is expected to yield 2.519 million bales. The total anticipated cotton production for both provinces stands at 7.417 million bales. Copyright Business Recorder, 2025
Business Recorder
7 days ago
- Business
- Business Recorder
Chinese CG, APTMA leaders discuss trade ties
LAHORE: Chinese Consulate General and All Pakistan Textile Mills Association (APTMA) leadership have resolved to upsurge bilateral trade, take maximum advantage of Free Trade Agreement (FTA) and to explore possibilities of joint ventures in textile industry. Zhao Shiren Consul General of China, Li Haoteng, Commercial Counsellor and Wang Yaqiang, Vice Consul visited APTMA office on Tuesday and discussed in detail prospects, ways and means to increase volume of trade and joint ventures in textile industry. Dr Gohar Ejaz, Patron-in-Chief APTMA and Chairman APTMA Kamran Arshad welcomed the Chinese Consul General at APTMA. They were accompanied by Syed Ali Ahsan, former Chairman APTMA, Zonal Management Committee members including Haroon Ellahi, Muhammad Ali, Faisal Jawed, Ahsan Shahid, Ismail Fareed, Habib Anwar, leading textile exporters, Secretary General APTMA Shahid Sattar and Secretary General North Mohammad Raza Baqir. Speaking on the occasion, Zhao Shiren said both China and Pakistan enjoy strong economic and cultural relations and China Pakistan Economic Corridor (CPEC) is an example of this robust relationship between both the countries. He highly appreciated the role of APTMA in general and of Dr Gohar Ejaz in particular in expansion of bilateral economic relations. He enumerated highly plausible services rendered by Dr Gohar Ejaz in cementing relation between China and Pakistan not only as Commerce Minister but also in his private capacity. He also spoke volume about community and welfare services being performed by Gohar Ejaz Foundation for poverty alleviation, medical services, educational and research uplift and industrialization of the country. Consul General highlighted expansion of bilateral trade since the signing of China-Pakistan Free Trade Agreement (FTA) in 2006 and resolved to further uplift the said volume by taking maximum benefits from FTA. He noted that balance of trade is presently in favour of China and assured of his help to not only expand trade volume but also to bridge the gap in balance of trade. He informed that textile goods falling in more than 800 HS tariff lines of customs chapters 50 to 63 enjoy duty free status under FTA on import into China from Pakistan. He emphasised Pakistani textile industry to avail duty free regime widely liberalized for Pakistani textile products since implementation of Phase II of FTA in 2020. Copyright Business Recorder, 2025
Business Recorder
24-06-2025
- Business
- Business Recorder
ST, duty exemptions on imported cotton, yarn being withdrawn, Aurangzeb tells NA
ISLAMABAD: Finance Minister Muhammad Aurangzeb informed the National Assembly on Monday that the government has decided to withdraw sales tax and duty exemptions on imported cotton and yarn to support local cotton farmers and revive the domestic textile industry. In his winding-up speech on the debate on the Finance Bill 2024-25, he said the government had introduced an export facilitation scheme several years ago that allowed exporters to import raw materials duty- and tax-free to boost exports. However, he added that data from the past three years revealed a significant price gap between imported cotton and yarn and locally produced goods, which negatively impacted cotton farmers. Imported cotton yarn: APTMA hails 18pc sales tax imposition By removing these exemptions, Aurangzeb said the move is aimed at increasing local cotton production, rejuvenating spinning mills, and conserving foreign exchange reserves. He also announced Rs36 billion in additional tax measures for the fiscal year 2025-26 to compensate for revenue shortfalls caused by a reduction in sales tax on solar panels, while outlining a series of fiscal adjustments and social spending initiatives aimed at stabilising the economy and promoting inclusive growth. He said the government had presented a 'balanced budget' focused on broadening the tax base, improving compliance, controlling expenditures, and enhancing transparency. 'To keep government spending in check and ensure fiscal responsibility, we have introduced new taxes amounting to just 0.25 per cent of GDP,' he said. 'Our emphasis remains on expanding the tax net rather than burdening existing taxpayers.' He said key elements of the revised fiscal plan include measures to promote digitalisation, amend tax laws, and ease the tax burden on salaried individuals. 'We are facilitating the construction industry, introducing environmental tax reforms, and undertaking tariff rationalisation to lower business costs, curb smuggling, and boost exports…these reforms would be phased in gradually,' he added. Aurangzeb said that efforts to revive the industrial sector are under way, adding an industrial policy will be announced soon, and the government is already holding consultations on an electric vehicle policy. Among the far-reaching steps taken by the government, Aurangzeb highlighted a substantial increase in Benazir Income Support Programme (BISP) allocation – from Rs592 billion to Rs716 billion – benefiting nearly 10 million families. 'We want to empower recipients through skills development,' he said, noting the launch of Pakistan's first Skills Impact Bond with the British Asian Trust to provide results-based skills training. The minister also announced a flagship agricultural initiative offering unsecured, digital loans of up to Rs1 million to smallholder farmers, covering inputs such as seeds, fertiliser, and diesel. An Electronic Warehouse Receipt System would also be introduced to help farmers store and sell their grain more effectively. In housing, he said the government would launch a 20-year affordable home financing scheme for low-income first-time buyers. Aurangzeb also highlighted progress on women's financial inclusion, noting that Rs14 billion in loans have already been disbursed to 193,000 women under the Women Inclusive Finance Programme, with a similar amount planned for next year with support from the Asian Development Bank (ADB). Aurangzeb outlined several revisions to the original budget, including a further reduction in income tax for salaried individuals. 'Initially, we reduced the tax rate on income up to Rs3.2 million annually. For income between Rs600,000 and Rs1.2 million, the tax was to be cut from five per cent to 2.5 per cent. On the Prime Minister Shehbaz Sharif's instructions, this has now been slashed to just one per cent,' he added. Clarifying controversy over pension taxation, he said, 'Only individuals receiving over Rs10 million annually in pensions will be taxed. Pensioners over the age of 75 are fully exempt.' The proposed 18 per cent sales tax on imported solar panels has also been revised. 'It has now been reduced to 10 per cent and will only apply to 46 per cent of components, translating into a modest 4.6 per cent price increase,' he said. He criticised 'opportunistic profiteering and hoarding' and warned that the government would take strict action against such practices. He said amendments were also made to proposed changes in the powers of the Federal Board of Revenue (FBR). 'For cases below Rs50 million, arrests will now require a court warrant, and specific conditions must be met. Oversight will be ensured through a three-member FBR committee and mandatory presentation before a special judge within 24 hours,' he said. He continued that most recommendations from the National Assembly's Finance Committee had been incorporated. One such change was a revised approach to taxing e-commerce, with micro and small enterprises being shifted to a simplified tax regime. Responding to concerns over restrictions on economic transactions by non-filers, the minister said exemptions would apply to residential property purchases up to Rs50 million, commercial property up to Rs100 million, and vehicles up to Rs7 million. 'These limits may be revised later by the federal government,' he added. The minister also warned of regional instability, citing the ongoing Iran-Israel conflict and its potential economic spill over effects. 'A special committee was formed by the prime minister on June 14 to monitor such developments and ensure a coordinated response,' he added. In concluding remarks, he expressed gratitude to members of both houses of Parliament, committee chairs, and economic experts. 'I thank the Opposition leader Omar Ayub Khan, Saleem Mandviwalla, Naveed Qamar, and all members of the finance and revenue committees for their valuable suggestions, many of which have been incorporated,' he added. He also acknowledged the contributions of Prime Minister Sharif and Pakistan Muslim League-Nawaz (PML-N) supremo Nawaz Sharif and allied party leaders, saying 'their guidance was instrumental in formulating this budget.' 'National consensus is essential for economic recovery. Let us work together to build a brighter future for Pakistan,' he concluded. Copyright Business Recorder, 2025
Business Recorder
24-06-2025
- Business
- Business Recorder
ST, duty exemptions on imported cotton, yarn being withdrawn, Aurangzeb tells NA: Govt taking steps to support cotton farmers, industry
ISLAMABAD: Finance Minister Muhammad Aurangzeb informed the National Assembly on Monday that the government has decided to withdraw sales tax and duty exemptions on imported cotton and yarn to support local cotton farmers and revive the domestic textile industry. In his winding-up speech on the debate on the Finance Bill 2024-25, he said the government had introduced an export facilitation scheme several years ago that allowed exporters to import raw materials duty- and tax-free to boost exports. However, he added that data from the past three years revealed a significant price gap between imported cotton and yarn and locally produced goods, which negatively impacted cotton farmers. Imported cotton yarn: APTMA hails 18pc sales tax imposition By removing these exemptions, Aurangzeb said the move is aimed at increasing local cotton production, rejuvenating spinning mills, and conserving foreign exchange reserves. He also announced Rs36 billion in additional tax measures for the fiscal year 2025-26 to compensate for revenue shortfalls caused by a reduction in sales tax on solar panels, while outlining a series of fiscal adjustments and social spending initiatives aimed at stabilising the economy and promoting inclusive growth. He said the government had presented a 'balanced budget' focused on broadening the tax base, improving compliance, controlling expenditures, and enhancing transparency. 'To keep government spending in check and ensure fiscal responsibility, we have introduced new taxes amounting to just 0.25 per cent of GDP,' he said. 'Our emphasis remains on expanding the tax net rather than burdening existing taxpayers.' He said key elements of the revised fiscal plan include measures to promote digitalisation, amend tax laws, and ease the tax burden on salaried individuals. 'We are facilitating the construction industry, introducing environmental tax reforms, and undertaking tariff rationalisation to lower business costs, curb smuggling, and boost exports…these reforms would be phased in gradually,' he added. Aurangzeb said that efforts to revive the industrial sector are under way, adding an industrial policy will be announced soon, and the government is already holding consultations on an electric vehicle policy. Among the far-reaching steps taken by the government, Aurangzeb highlighted a substantial increase in Benazir Income Support Programme (BISP) allocation – from Rs592 billion to Rs716 billion – benefiting nearly 10 million families. 'We want to empower recipients through skills development,' he said, noting the launch of Pakistan's first Skills Impact Bond with the British Asian Trust to provide results-based skills training. The minister also announced a flagship agricultural initiative offering unsecured, digital loans of up to Rs1 million to smallholder farmers, covering inputs such as seeds, fertiliser, and diesel. An Electronic Warehouse Receipt System would also be introduced to help farmers store and sell their grain more effectively. In housing, he said the government would launch a 20-year affordable home financing scheme for low-income first-time buyers. Aurangzeb also highlighted progress on women's financial inclusion, noting that Rs14 billion in loans have already been disbursed to 193,000 women under the Women Inclusive Finance Programme, with a similar amount planned for next year with support from the Asian Development Bank (ADB). Aurangzeb outlined several revisions to the original budget, including a further reduction in income tax for salaried individuals. 'Initially, we reduced the tax rate on income up to Rs3.2 million annually. For income between Rs600,000 and Rs1.2 million, the tax was to be cut from five per cent to 2.5 per cent. On the Prime Minister Shehbaz Sharif's instructions, this has now been slashed to just one per cent,' he added. Clarifying controversy over pension taxation, he said, 'Only individuals receiving over Rs10 million annually in pensions will be taxed. Pensioners over the age of 75 are fully exempt.' The proposed 18 per cent sales tax on imported solar panels has also been revised. 'It has now been reduced to 10 per cent and will only apply to 46 per cent of components, translating into a modest 4.6 per cent price increase,' he said. He criticised 'opportunistic profiteering and hoarding' and warned that the government would take strict action against such practices. He said amendments were also made to proposed changes in the powers of the Federal Board of Revenue (FBR). 'For cases below Rs50 million, arrests will now require a court warrant, and specific conditions must be met. Oversight will be ensured through a three-member FBR committee and mandatory presentation before a special judge within 24 hours,' he said. He continued that most recommendations from the National Assembly's Finance Committee had been incorporated. One such change was a revised approach to taxing e-commerce, with micro and small enterprises being shifted to a simplified tax regime. Responding to concerns over restrictions on economic transactions by non-filers, the minister said exemptions would apply to residential property purchases up to Rs50 million, commercial property up to Rs100 million, and vehicles up to Rs7 million. 'These limits may be revised later by the federal government,' he added. The minister also warned of regional instability, citing the ongoing Iran-Israel conflict and its potential economic spill over effects. 'A special committee was formed by the prime minister on June 14 to monitor such developments and ensure a coordinated response,' he added. In concluding remarks, he expressed gratitude to members of both houses of Parliament, committee chairs, and economic experts. 'I thank the Opposition leader Omar Ayub Khan, Saleem Mandviwalla, Naveed Qamar, and all members of the finance and revenue committees for their valuable suggestions, many of which have been incorporated,' he added. He also acknowledged the contributions of Prime Minister Sharif and Pakistan Muslim League-Nawaz (PML-N) supremo Nawaz Sharif and allied party leaders, saying 'their guidance was instrumental in formulating this budget.' 'National consensus is essential for economic recovery. Let us work together to build a brighter future for Pakistan,' he concluded. Copyright Business Recorder, 2025
Business Recorder
23-06-2025
- Business
- Business Recorder
Aurangzeb unveils new tax measures, targets poultry, mutual funds & govt securities
Finance Minister Muhammad Aurangzeb unveiled new taxation measures, including levies on income generated from mutual funds and government securities, at the National Assembly on Monday. Addressing the lower house, the finance minister presented three more budget proposals. 'The first of these is to increase the tax rate on income derived from the debt portion of mutual funds issued to companies from 25% to 29%. Secondly, it is proposed to impose a 20% tax on profits made by corporations and companies on investments in government securities,' he said. The government has also proposed to tax the poultry sector, said Aurangzeb. 'It is proposed that a Federal Excise Duty (FED) of Rs10 per day-old chick should be imposed on hatchery chicks, so that this sector can also contribute to the national exchequer,' he said. The finance minister maintained that the government has presented a balanced budget for the fiscal year 2025-26. 'On one hand, we have kept government expenditure under control, while on the other, much emphasis has been laid towards increasing tax base and its compliance,' said Aurangzeb. Imported cotton yarn: APTMA hails 18pc sales tax imposition Aurangzeb said that tariff rationalisation is vital, stating: 'By lowering import duties, our business unit cost would decrease, which will facilitate exports.' He said that the government will soon announce an industrial policy, whereas consultation on EV policy has already been initiated. Moreover, the government, in collaboration with British Asian Trust, would soon launch Pakistan's first Skill Impact Bond (SIB). The SIB links funding to the achievement of outcomes, he said. Affordable Housing The government, in its bid to promote affordable housing, would launch a 20-year loan scheme for the low-income segment, informed Auranzgeb. He clarified: 'Only those dams will be pursued that are already approved.' On Saturday, Aurangzeb, in his address to the Senate, announced key relief measures in the federal budget for FY2025-26, including a significant income tax cut for the salaried class and a reduction in General Sales Tax (GST) on imported solar panels. The finance minister, on Monday, reiterated that individuals earning between Rs600,000 and Rs1.2 million annually will now be taxed at just 1%, down from 2.5% proposed in the budget for FY2025-26. He said that tax has been imposed on individuals receiving an annual pension of over Rs10 million, while, on the special instructions of the Prime Minister of Pakistan, pensioners over the age of 75 are exempt from all types of taxes. Aurangzeb added that the proposed 18% GST on solar panel imports has been lowered to 10%. Powers of FBR Aurangzeb informed the lower house that on the special instructions of the Prime Minister, the existing powers of the FBR regarding tax fraud and the amendments made through the Finance Bill were reviewed once again, under which tax fraud has been categorised into cognizable and non-cognizable offences. 'In cases involving up to Rs50 million, the FBR will not be able to arrest without a court warrant,' he said. In addition, any one of the following conditions must be fulfilled for arrest: 1) the accused deliberately did not become a part of the inquiry despite three notices; 2) the accused tries to escape; and 3) tampers with the record. 'Despite this, the approval for arrest will be given by a high-level three-member committee of the FBR, instead of an officer, and it will be necessary to present the arrested persons before the court of a special judge within 24 hours,' he said. In addition, it will be ensured that no citizen is abused in this process, he added. Real estate sector In the real estate sector, Aurangzeb noted that in the past, people used to buy large properties beyond their declared financial means. Under Section 114C of the Income Tax Ordinance, the Finance Bill proposed to prohibit such people from engaging in large financial activities. 'On the instructions of the prime minister, this new law will not apply to the purchase of residential plots or houses worth up to Rs50 million, commercial plots or properties worth up to Rs100 million and vehicles worth up to Rs7 million,' said the finance minister. Aurangzeb said that the ongoing tensions between Iran Israel are expected to disturb the region's economic situation. However, the government is prepared to deal with any situation, he assured the lower house.
