The Association of all Pakistani textile factories (APTMA) urged the government to ensure the treatment of equal treatment of local raw materials and medium input suppliers in export manufacturing, warning that failure to address abnormal cases in the export facilitation scheme (EFS) pushes the spinning industry towards collapse towards collapse.
Aptma Kamran Arshad president warned that the entire fabric value chain is at risk, as more than 100 yarn mill – 40 % of the productive capacity in this field – closed and remaining mills that work with a capacity of less than 50 %.
He highlighted an increase in yarn imports, which reached 32 million kilograms in January 2025. At this rate, it is expected that imports for the fiscal year will exceed 25 times compared to the previous fiscal year, threatening the survival of local producers.
Arshad criticized the current sales tax system, which imposes a 18 % tax on local supplies to manufacture export while allowing tax exodus. He warned that if this contrast is not treated, the fabric manufacturing base in Pakistan can be replaced completely with imports, which leads to severe industrial and economic consequences.
Sources are currently facing an unequal stadium, as they must first pay a 18 % sales tax on local inputs, and then wait for up to a year for a partial recovery, with about 30 % of the amount held for manual treatment.
APTMA argues that this system stimulates dependence on import at the expense of the local industry, especially small and medium -sized companies (SMES).
The association called for immediate political reviews to prevent further damage to the textile sector, and urged the government to remove the tax burden on the supply of local inputs and restore the competitiveness in the manufacture of export.
