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Business Recorder
24-06-2025
- Business
- Business Recorder
Textile industry: PHMA, PRGMEA for implementation of budget proposals through FBR's body
LAHORE: The Pakistan Hosiery Manufacturers & Exporters Association (PHMA) and the Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) on Monday urged the government to consider and implement the textile industry's key budget proposals through the FBR's Budget Anomaly Committee. The demand came during a post-budget joint meeting of both associations, which was attended by PHMA Chairman Abdul Hameed, PHMA former chairmen Naseer Butt and Shehzad Azam Khan, PRGMEA Chairman Dr Ayyazuddin, and PRGMEA former chairmen Ijaz Khokhar and Sohail Afzal Sheikh. It was clarified that these are proposals from the textile export sector currently being submitted to the committee for review. The participants stressed that the government must not only examine these industry recommendations through the Anomaly Committee process but also implement the committee's final report once compiled. While addressing the meeting, PHMA Chairman Abdul Hameed pointed out that Pakistan's value-added textile, apparel, bedwear, home textile, and towel sectors contribute over $11 billion in annual exports and provide livelihoods to millions. He expressed concern over the replacement of the simplified Final Tax Regime (FTR) with the more complex Normal Tax Regime (NTR), which now subjects exporters to both a 1% minimum tax and a 1% advance tax on export proceeds —regardless of actual profit. PHMA former chairman Naseer Butt, while speaking at the meeting, said that this dual taxation is counterproductive for an already distressed export sector. He warned that many SMEs are operating on thin margins and may be forced to close down if this policy is not reversed immediately. PHMA former chairman Shehzad Azam Khan highlighted the issues of refund delays, rising production costs, and inflation. He stressed that exporters are burdened with more taxes than their earnings, and demanded that the government urgently facilitate timely refunds and provide stable energy pricing. PRGMEA Chairman Dr Ayyazuddin, in his address, raised concerns over changes to the Export Facilitation Scheme (EFS), particularly the removal of zero-rating on local purchases and the imposition of sales tax on imported cotton yarn. He emphasised that these changes undermine the very objective of the EFS, which was introduced to reduce liquidity pressure and digitize export procedures. PRGMEA former chairman Ijaz Khokhar said that Pakistan's regional competitors like Bangladesh and Vietnam provide tax-free access to raw materials for exporters, giving them an edge in international markets. He called for restoring the original EFS framework under SRO 957(I)/2021, which allowed zero-rated invoicing on local inputs and exempted key materials from sales tax at the import stage. PRGMEA former chairman Sohail Afzal Sheikh demanded the immediate restoration of Regionally Competitive Energy Tariffs (RCET), which were earlier suspended. He noted that the discontinuation of RCET has led to high manufacturing costs and forced many SME exporters to scale down or shut operations. He also called for the revival of Duty Drawback on Local Taxes and Levies (DLTL) under the Textile & Apparel Policy 2025–30 and the release of long-pending DLTL and Technology Upgradation Fund (TUF) claims stuck with the State Bank of Pakistan. All participants in the meeting stressed that further burdening exporters with complex taxation, refund issues, and high input costs will shrink the country's export base and push more businesses out of the formal economy. They emphasized that the textile sector is the backbone of Pakistan's economy and requires urgent policy support. PHMA Chairman Abdul Hameed urged Prime Minister Shehbaz Sharif, Finance Minister Muhammad Aurangzeb, and Commerce Minister Jam Kamal to intervene personally and ensure the textile sector's proposals are properly addressed. He said the industry remains committed to cooperation, but warned that failure to implement the Anomaly Committee's recommendations could lead to irreversible losses in exports, jobs, and global market share. Copyright Business Recorder, 2025
Express Tribune
22-06-2025
- Business
- Express Tribune
Textile industry for adopting proposals
Listen to article Pakistan Hosiery Manufacturers and Exporters Association (PHMA) and Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) have jointly urged the government to consider and implement the textile industry's key budget proposals through the Federal Board of Revenue's (FBR) budget anomaly committee. The demand came during a post-budget meeting of both associations, which was attended by PHMA Chairman Abdul Hameed, former PHMA chairmen Naseer Butt and Shehzad Azam Khan, PRGMEA Chairman Dr Ayyazuddin and former PRGMEA chairmen Ijaz Khokhar and Sohail Afzal Sheikh. Meeting participants stressed that the government must not only examine industry recommendations through the anomaly committee but also implement the committee's final report once compiled. PHMA Chairman Abdul Hameed pointed out that Pakistan's value-added textile, apparel, bed wear, home textile and towel sectors contribute over $11 billion in annual exports and provide livelihoods to millions. He expressed concern over the replacement of the simplified Final Tax Regime (FTR) with the more complex Normal Tax Regime (NTR), which now subjects exporters to both 1% minimum tax and 1% advance tax on export proceeds, regardless of the actual profit. Former PHMA chairman Naseer Butt, while speaking at the meeting, said that dual taxation was counterproductive for an already distressed export sector. He warned that many small and medium enterprises (SMEs) were operating on thin margins and may be forced to close down if the policy was not reversed immediately. Shehzad Azam Khan, also a former PHMA chairman, highlighted the issues of refund delays, rising production costs and inflation. He stressed that exporters were burdened with more taxes than their earnings and demanded that the government urgently facilitate timely refunds and ensure stable energy pricing. PRGMEA Chairman Dr Ayyazuddin, in his remarks, raised concerns over changes to the Export Facilitation Scheme (EFS), particularly the removal of zero-rating on local purchases and the imposition of sales tax on imported cotton yarn. He emphasised that these changes undermine the very objective of the EFS, which was introduced to reduce liquidity pressure and digitise export procedures. Ex-PRGMEA chairman Ijaz Khokhar said that Pakistan's regional competitors like Bangladesh and Vietnam provide tax-free access to raw material for exporters, giving them an edge in international markets. He called for restoring the original EFS framework under SRO 957(I)/2021.
Business Recorder
02-06-2025
- Business
- Business Recorder
Trade barriers and cooling supply chains: Apparel sector warns of setbacks
LAHORE: Seeking an urgent meeting with Prime Minister Shehbaz Sharif ahead of the federal budget, Pakistan's apparel sector; a vital contributor of over $9 billion in export revenue has warned that the country's value-added textile industry faces serious setbacks due to continued tariff barriers and restrictive policies that are choking supply chains. In a joint statement issued by the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) and the Pakistan Hosiery Manufacturers & Exporters Association (PHMA), apparel exporters stressed that global buyers now demand certified, high-performance materials that are simply not available in Pakistan. Yet, import of such essential raw materials remains hindered by duties and outdated regulations. PRGMEA Regional Chairman Dr. Ayyazuddin and PHMA Zonal Chairman Abdul Hameed jointly demanded a direct and an immediate meeting with the prime minister ahead of the budget, warning that without urgent intervention, Pakistan could lose out on the global shift in sourcing patterns that has opened fresh opportunities for new exporters. Dr. Ayyazuddin emphasized that Pakistan still relies heavily on cotton-based exports — primarily denim and fleece — while nearly 80% of global apparel trade has moved toward synthetic and functional textiles. 'We cannot expand or diversify if we don't have access to the right raw materials,' the statement said. 'We are being penalized for importing items that aren't even produced locally.' Abdul Hameed pointed out that man-made fibers, technical yarns, performance fabrics, and critical trims — many categorized under HS Chapters 54, 55, and 96 — are subject to duties despite not being manufactured in the country. 'Keeping tariffs on non-available raw materials is equivalent to taxing exports before they even happen,' he said. Former PRGMEA chairmen Ijaz Khokhar and Sajid Saleem Minhas backing the joint demand highlighted that SMEs are particularly vulnerable due to rigid policies and lack of flexibility in global compliance. 'We've sent a detailed letter to the Prime Minister Shehbaz Sharif and commerce ministry outlining how certain recent policy changes, like the shortening of the Export Facilitation Scheme (EFS) input period from 60 to just 9 months, are unrealistic for the apparel sector,' he said. PRGMEA ex-chairmen Ijaz Khokhar added that the letter, addressed to the PM as well as the Commerce Minister Jam Kamal, strongly criticizes the abrupt shift in EFS timelines. He argued that value-added exporters often operate under just-in-time and never-out-of-stock business models, requiring longer input cycles to fulfil diverse orders. He said that the current restrictions, it warns, will disrupt operations and increase compliance burdens for exporters. Sajid Saleem Minhas added that the local spinning industry has not evolved to meet the requirements of today's global fashion market. Since we don't produce the materials our buyers demand, we should at least allow their duty-free import. Otherwise, we are locking ourselves out of high-growth product categories, he said. The PRGMEA and PHMA members also called for restoration of the Final Tax Regime (FTR) for exporters, stating that the shift to the Normal Tax Regime has led to complex audits and disrupted business continuity. We need simplicity and certainty, not additional paperwork and scrutiny,' the statement noted. Ijaz Khokhar also raised another concern which is the lack of government push on trade diplomacy, particularly with the United States, where Pakistani textiles face an average import tariff of 29%, compared to lower rates for competitors like Bangladesh and Vietnam. The letter suggests Pakistan negotiate preferential terms or targeted tariff relief with the U.S., especially for eco-friendly and sustainable products that align with global ESG compliance. He said that refund delays were also highlighted as a chronic problem. Exporters are facing severe liquidity shortages due to delayed disbursement of DLTL, DDT, sales tax, and withholding tax refunds. The industry has requested an automated and time-bound mechanism for refund processing to ease working capital constraints. Additionally, both associations emphasized the need for a strong national marketing campaign for 'Made in Pakistan' garments. They urged the Ministry of Commerce to initiate global trade outreach through embassies, digital platforms, and targeted B2B events to increase visibility and improve brand image. He said that this sector has the potential to double its exports in five years and added that we need the government to first remove these structural roadblocks. Sajid Minhas said that the Pakistan's value-added textile sector is one of the largest employers and a key contributor to national exports. The country cannot afford to lose this opportunity. We request the prime minister to meet us urgently and help align policy with global market realities. Copyright Business Recorder, 2025
Express Tribune
28-05-2025
- Business
- Express Tribune
Textile exporters sound alarm over tax, energy policies
Pakistan's leading garment and textile exporters have sounded alarm over the government's policies that they fear will cripple the vital export sectors, which will in turn lose a crucial opportunity to capture a larger pie of the global market. The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has vehemently opposed any move to impose 18% sales tax on exporters operating under the Export Facilitation Scheme (EFS). It warned that such a regressive tax measure would paralyse the garment export sector, stifle the essential cash flow and derail the chance for Pakistan to increase its presence in the global apparel market. The association expressed concern over what it described as a deliberate campaign by vested interests within the textile sector to weaken the country's most dynamic and value-added industry. PRGMEA Regional Chairman Dr Ayyazuddin stated that the EFS was not a luxury but a necessity for export-led growth, adding that the garment industry, being entirely export-oriented and positioned at the end of textile value chain, was already bearing the brunt of delayed refunds and multiple taxes. "Exporters pay sales tax upfront and wait for months to receive refunds; they often face a three-month delay, which severely hampers their cash flow and operational capacity," Ayyazuddin elaborated. He stressed that the imposition of additional taxes would prove disastrous as the garment industry was playing a critical role as Pakistan's biggest source of employment and foreign exchange, particularly at a time when global trade shifts were offering new opportunities. He warned that any restriction or levy on imported inputs, which are essential as 79% of the global textile market uses synthetic filament yarn, would push international buyers to divert orders to Pakistan's competitors like Bangladesh, Vietnam or Cambodia. Simultaneously, the Pakistan Hosiery Manufacturers Association (PHMA) called on the government to abolish the outdated peak and off-peak electricity tariff structure. In a letter sent to top government officials, the PHMA highlighted that the peak-hour surcharge policy was introduced to curb consumption during critical power shortages. However, the energy scenario has changed significantly, with Pakistan now having a surplus generation capacity and even exploring electricity exports. Under such circumstances, the PHMA argued, the rationale for maintaining peak and off-peak tariff differential has completely vanished. PHMA Zonal Chairman Abdul Hameed noted that exporters in the hosiery and textile sector, operating 24/7 to meet global deadlines, were struggling with competitiveness challenges due to high electricity charges during peak hours. Fluctuating tariffs force industries to change production schedules, reducing efficiency and increasing overall costs, which weakens Pakistan's position internationally. Hameed emphasised that the surplus power situation presents a clear opportunity for reform.
Hindustan Times
23-04-2025
- Politics
- Hindustan Times
After years, Kashmir shuts down to protest Pahalgam terror attack
For the first time since the revocation of Article 370 in 2019, the Kashmir Valley observed a complete hartal (shutdown) with shops and educational institutions closed and traffic off the roads on Wednesday to protest the dastardly terror attack on tourists in Pahalgam that left at least 26 dead on Tuesday afternoon. The tourist destination of Pahalgam resembled a ghost town with businesses downing their shutters and no vehicles plying. Srinagar, including the old city, wore a deserted look. 'All markets were closed in the city's business hub of Lal Chowk. This is the first time after years that such a hartal is being observed in Kashmir, particularly after the Narendra Modi-led Centre's crackdown on Kashmiri separatists,' said Abdul Hameed, a local resident and streetfood seller. The incident shocked the Valley and its tourism industry after the terrorists gunned down 26 visitors in the Baisaran meadow of Pahalgam in south Kashmir's Anantnag district on Tuesday. Union home minister Amit Shah, who arrived in Srinagar on Tuesday night, lieutenant governor Manoj Sinha and chief minister Omar Abdullah paid their last respects to the slain tourists at the police control room in Srinagar. Expressing shock and anguish against the despicable attack, the chief minister announced an ex gratia of ₹10 lakh each for the families of the deceased, ₹2 lakh for those seriously injured, and ₹1 lakh for those with minor injuries. 'This barbaric and senseless act of brutality against innocent civilians has no place in our society. We condemn it in the strongest possible terms. We mourn the precious lives lost,' he said. He said all arrangements for the dignified transport of the victims back to their homes have been made and the injured are being provided the best medical care. 'Our hearts go out to the bereaved families. We share in your grief and stand by you in this dark hour. But terror will never break our resolve, and we will not rest until those behind this barbarity are brought to justice,' he said. All major mainstream parties, including the National Conference and Peoples Democratic Party, and Kashmir chief cleric Mirwaiz Umar Farooq-led Mutahida Majlis Ulama called the strike against the killings. 'Whoever kills an innocent soul, it is as if he has slain mankind entirely. Another day of carnage in the blood-soaked history of Kashmir when visiting tourists are mercilessly killed in the most gruesome manner. Such gruesomeness is abhorred in Islam. The Islamic fraternity of Jammu and Kashmir through the MMU in support and solidarity with the bereaved families of those killed appeal to the people of Jammu and Kashmir to peacefully protest this heinous crime by observing a shutdown,' Mirwaiz said.
