APTMA chief underscores need for reducing electricity tariffs, restoring RCET

LAHORE: Newly-elected Chairman All Pakistan Textile Mills Association (APTMA) Kamran Arshad has urged policymakers to reduce electricity tariff and restore Regionally Competitive Energy Tariff (RCET) besides reversing the government policy of curtailing gas supply to captive consumers from 1st Jan 2025, and include local yarn supply in the Export Facilitation Scheme (EFS) scheme.

These measures will revitalise the textile sector, boost economic growth, and create employment opportunities, he added.

Arshad also sought a cut in the interest rate for the industrial growth.

He was addressing the Annual General Meeting of the Association on Monday at the APTMA Lahore office.

Earlier, Mohammad Raza Baqir, Secretary General North Zone APTMA, opened the house while Umar Nazar Shah announced election results of the Association, declaring Kamran Arshad as central Chairman, followed by Muhammad Jameel Qasim as Senior Vice Chairman, Siddique Javed Bhatti as Vice Chairman and Shahzad Ahmed Shaikh as Vice Chairman (Value-added sector) for 2024-26.

In the Northern zone, he said Asad Shafi has been elected as Chairman, Anees M Khawaja as Senior Vice Chairman, Ahmad Shafi as Vice Chairman; and Mohammad Qasim as Treasurer for the Northern Zone for 2024-25.

He said the Zonal Managing Committee is comprised Haroon Ellahi Sh, Faisal Jawed, Asad Kamal, S M Nabeel, Muhammad Ali Ch, Amir Abdullah, Sufyan Akhtar and Ahsan Shahid Warraich.

Kamran Arshad appreciated the untiring efforts of Group Leader and Patron-in-Chief APTMA Dr Gohar Ejaz in securing the confidence and trust of the Association members in the APTMA Annual Elections of 2024-26 for the 16th consecutive year.

He also congratulated his group members for securing an unprecedented consecutive victory in the annual elections of APTMA both at Centre and Zonal levels.

Kamran Arshad said the past year has been incredibly tough for Pakistan, marked by tight monetary policies, fiscal constraints, rising energy costs, and political uncertainty, all set against the backdrop of a global economic downturn. The textile sector, a significant contributor to the country’s economy, has been particularly hard hit.

He said the industry faced challenges of withdrawal of the Regional Cumulative Effectiveness Theory (RCET) in 2023, dealing a severe blow to the industry, especially in Punjab.

He said the energy tariff disparities exacerbating the situation.

Also, he mentioned misuse of the Export Facilitation Scheme (EFS) following the withdrawal of sales tax zero rating on local inputs through the Finance Act 2024 and 18 percent tax gap between local and imported inputs, leading to a surge in yarn imports.

According to him, the textile industry’s struggles have significant economic implications for Pakistan. The sector is a major employer and contributor to the country’s GDP. The current challenges threaten the industry’s viability and, in turn, the country’s economic stability.

He said the textile industry had experienced remarkable growth over the past 15 years. Dr Gohar Ejaz, the leader of APTMA, the industry’s supreme body, has been at the helm of this success, which has seen textile exports rise from $10 billion in 2009-10 to $16.5 billion in 2023-24, with a record high of $19 billion achieved in 2021-22. It led to exponential growth in the textile industry capacity to $25 billion under TERF. However, the industry was forced to operate at 65 percent capacity due to change in energy prices and taxation regime of sales tax in 2022.

Speaking on the occasion, business community leader Dr Gohar Ejaz hailed the newly elected members on their unprecedented 16th consecutive win in the APTMA elections, covering both North and South zones. He expressed the hope that the new leadership will actively contribute to bolstering the country’s exports and collaborate with the government to create a conducive business environment in this respect.

He said the APTMA had transformed from yarn and fabric representative body to complete value chain, which is visible in the composition of the executive body, represented by CEOs of largest denim garments, home textiles, knits, towel, dyed fabrics, cotton yarn and synthetic textiles companies.

The newly-elected Northern Zone Chairman Asad Shafi urged the members to invest in the value-added sector to avail the huge potential ahead. According to him, Pakistan is a country of 250 million people and a timely investment in the value-added sector can create miracles in the exports of the country.

Copyright Business Recorder, 2024