KARACHI: The All Pakis­tan Textile Mills Association (Aptma) has urged the government to avoid imposing any new taxes on the manufacturing sector in the upcoming budget.

Highlighting a massive rise in trade deficit to $19.9 billion during the first 10 months of this fiscal year from $14.6bn in the same period last year, the association in its proposals for budget 2017-18 has urged the government to announce measures to improve the performance the export sector.

It noted that the textile exports dropped to $10.291bn during the July-April period from $13bn in the corresponding period last year. The sector is running below capacity although it has a potential to increase exports to $30bn.

Faced with tough competition from regional rivals coupled with high cost of doing business, the textile sector has seen a hard battle for survival in the global market, the association observed.

Aptma urged the government to provide gas at a regionally competitive rate of Rs400 million British thermal unit (mmBtu) across the country and remove the levy of GIDC. The rate of RLNG should also be reduced.

It stressed upon the need to provide all the inputs to the industry at zero rating including packaging materials, spare parts and fuel and energy.

It also demanded that refunds amounting to Rs200bn should be paid at the earliest as the industry is facing a liquidity crunch.

Published in Dawn, May 25th, 2017