APTMA Calls for Revival of Energy and Other Subsidies in Upcoming Budget

The All Pakistan Textile Mills Association (APTMA) has urged the government to revive energy and other subsidies to boost the country’s textile exports. In its draft budget proposal for 2023-24 sent to Finance Minister Ishaq Dar, the Association has also demanded the restoration of zero-rating status for the export sector and service-based tariff for the export sector. The document shared with the minister lists as many as 15 budgetary proposals which APTMA considers vital for the revival of textile exports. The country’s textile group exports have declined by 12.40 percent (or $1.766 billion) during the first nine months (July-March) of the current fiscal year 2022-23 (FY23). The proposals also conclude the refunds of deferred sales tax, the continuation of long-term financing facility, the refund of detention and demurrage charges, reasonable open access (wheeling) charges, and an end to the disparity in prices and availability of gas between export sectors of Punjab and Sindh. ATPMA has asked the government to allocate a sizable portion of the budget toward maintaining the Regionally Competitive Energy Tariff (RCET) until the end of the next fiscal year (FY24). It highlighted that due to the disparity in prices and availability of gas between Punjab and Sindh, the Punjab-based industries are unable to operate. The Association has also asked the government to allocate funds in the upcoming budget to address the issue of pending and deferred refunds.