LAHORE: The newly elected Chairman of the All Pakistan Textile Mills Association (APTMA), Mr Kamran Arshad, has urged policymakers to lower electricity tariffs, restore the Regionally Competitive Energy Tariff (RCET), and reverse the decision to curtail gas supplies to captive consumers, set to take effect from 1st January 2025. He also called for the inclusion of locally produced yarn in the Export Facilitation Scheme (EFS).
Mr Arshad stressed that these measures are essential for revitalising the textile sector, boosting economic growth, and generating employment opportunities. He also advocated for a reduction in interest rates to promote industrial expansion.
Addressing the Association’s Annual General Meeting at the APTMA office in Lahore on Monday, Mr Arshad expressed appreciation for the efforts of Group Leader and Patron-in-Chief, Dr Gohar Ejaz, in securing the continued confidence of APTMA members during the Association’s 2024-26 elections.
Earlier, Mohammad Raza Baqir, Secretary General of APTMA North Zone, commenced proceedings, while Umar Nazar Shah announced the election results. Mr Kamran Arshad was elected as Central Chairman, alongside Mr Muhammad Jameel Qasim as Senior Vice Chairman, Mr Siddique Javed Bhatti as Vice Chairman, and Mr Shahzad Ahmed Shaikh as Vice Chairman (Value-Added Sector) for the 2024-26 term.
In the Northern Zone, Mr Asad Shafi was elected as Chairman, Mr Anees M. Khawaja as Senior Vice Chairman, Mr Ahmad Shafi as Vice Chairman, and Mr Mohammad Qasim as Treasurer for 2024-25. The Zonal Managing Committee includes prominent figures such as Mr Haroon Ellahi Sh, Mr Faisal Jawed, Mr Asad Kamal, Mr S M Nabeel, Mr Muhammad Ali Ch, Mr Amir Abdullah, Mr Sufyan Akhtar, and Mr Ahsan Shahid Warraich.
Mr Arshad reflected on the challenges faced by the textile industry over the past year, particularly the withdrawal of RCET in 2023, which severely impacted the sector, especially in Punjab. He also highlighted the disparity in energy tariffs as a significant obstacle and expressed concerns over the misuse of the EFS following the withdrawal of the sales tax zero-rating on local inputs through the Finance Act 2024. The 18% tax differential between local and imported inputs has led to a surge in yarn imports.
The textile industry, he noted, has been a significant driver of Pakistan’s economy, both as a major employer and a contributor to GDP. However, the sector’s struggles pose a threat to the country’s economic stability. The industry’s capacity reached a peak of $25 billion under the Temporary Economic Refinance Facility (TERF), but due to changes in energy prices and the sales tax regime in 2022, operations were reduced to 65% capacity.
Speaking at the event, business leader Dr Gohar Ejaz congratulated the newly elected members on their unprecedented 16th consecutive victory in the APTMA elections, covering both North and South Zones. He expressed optimism that the new leadership would play an active role in enhancing Pakistan’s exports and collaborate with the government to create a favourable business environment.
Dr Ejaz also noted the transformation of APTMA from a body representing yarn and fabric producers to one encompassing the entire textile value chain. The executive body now includes CEOs of major companies from various sectors, including denim garments, home textiles, knits, towels, dyed fabrics, cotton yarn, and synthetic textiles.
Newly-elected Northern Zone Chairman, Mr Asad Shafi, urged members to invest in the value-added sector, highlighting the immense potential for growth. He emphasised that with Pakistan’s population of 250 million, timely investment in value-added products could significantly increase the country’s exports.
