Over 100 Spinning Mills Shut Down, With More on the Brink as Crisis Worsens

All Pakistan Textile Mills Association (APTMA) Chairman Kamran Arshad said that over 100 spinning mills—representing nearly 40 percent of the industry’s production capacity—have already shut down while the remaining mills are operating at less than 50 percent capacity. The All Pakistan Textile Mills Association (APTMA) has warned that pro-import tax policies are driving the spinning industry towards collapse and urged the government to ensure equal treatment for local raw material suppliers in export manufacturing. Yarn imports have spiked to a record 32 million kg in January 2025, with 2024-25 imports expected to triple compared to FY24. The chairman criticized the existing sales tax regime which imposes an 18 percent tax on domestic supplies for export manufacturers but allows duty-free imports. He warned that if this continues then the local textile sector could be overtaken by imported goods and lead to severe economic consequences. Exporters currently pay the sales tax upfront and face delays of up to a year for partial refunds, with around 30 percent of claims withheld indefinitely due to manual processing, he added. APTMA has called for immediate policy revisions to eliminate the tax burden on local input supplies and restore competitiveness to domestic textile manufacturing.