ISLAMABAD: The All Pakistan Textile Manufacturers Association (APTMA) has sought government’s permission for direct import of and transportation of LNG through third party and procurement of 35% new domestic gas discoveries through competitive bidding under 3 rd party access, sources told Newzshewz.
These demands have been tabled before the government’s finance team headed by Finance Minister, Muhammad Aurangzeb, Chairman FBR and Secretary Commerce at a meeting on held in Finance Ministry on Thursday.
APTMA also stated that neither should be subject to any form of levy, taxes, cross subsidies or other domestic inefficiencies like excessive unaccounted for gas rates, adding that in the meantime, supply RLNG at full cost without cross subsidies and other extraneous costs (excessive UFG, etc.).
On electricity tariff, APTMA stated demanded of the government to reduce industrial power tariff to 9 cents/kWh for all electricity supplied and remove Rs. 100 billion cross subsidy from industrial power tariffs.
They said that power tariff must be 9 Cents/kWh and incremental tariff of 8-9 Cents/kWh will not lead to industrial recovery, or growth in exports or power consumption since industry is currently at 60% of historical consumption and realizing incremental gains requires increasing to 100% and beyond that is neither feasible nor foreseeable. APTMA has also asked the government to allow B2B power contracts with reasonable wheeling charge and finalize wheeling charge at Rs. 5/kWh cost-of-service, excluding legacy costs of the grid unrelated to B2B consumers, adding that enabling textile sector to source clean, competitively priced electricity through B2B contracts is essential considering net-zero commitments and evolving environmental regulations like EU CBAM.
According to official statement, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, reiterated the government’s unwavering commitment to resolving critical issues related to taxation, energy, and financing, as part of its efforts to ensure the long-term viability and future growth of Pakistan’s industrial sector.
He made this statement during a meeting held today at the Finance Division with the leadership of the All Pakistan Textile Mills Association (APTMA). The meeting was attended by senior officials, including the Chairman of the Federal Board of Revenue (FBR), the Secretary of the Commerce Division, and other senior officers from the Finance Division and FBR.
Senator Muhammad Aurangzeb and his team welcomed the APTMA office-bearers and expressed the government’s strong commitment to providing all possible support to the textile sector.
The Finance Minister assured the delegation that the government recognizes the critical role of the textile industry in Pakistan’s economy and remains dedicated to addressing its concerns.
He emphasized that addressing the core challenges faced by the industry is key to creating a conducive environment for industrial development, fostering economic stability, and supporting the nation’s overall growth trajectory.
Earlier, the APTMA delegation, led by Chairman Kamran Arshad, provided a detailed presentation on several pressing issues facing the textile sector related to energy, taxation and financing. The presentation also touched on various recommendations and proposals for the long-term viability and growth of the sector.
The Finance Minister assured the APTMA leadership that the government would give a thorough and thoughtful analysis of their recommendations, incorporating viable suggestions into the federal budget. He reiterated the importance of the consultative process and emphasized that any anomalies in the current framework would be addressed.
The APTMA delegation expressed their appreciation for the expedited disbursement of tax refunds and requested further support for the clearance of outstanding dues. The Finance Minister reaffirmed that the government values this consultative approach and would continue to engage with key sectors to ensure their concerns are addressed effectively in the upcoming budget. Ends
