LAHORE: The All Pakistan Textile Mills Association (Aptma) has asked the government to reduce the interest rate to 12 per cent, the power tariff to 9 cents/kWh and restore the zero-rated regime to enable the industry to contribute to the national economy through exports, investment, and employment.

“The industry is paying Rs240 billion in cross-subsidies and over Rs150bn in stranded cost. And the supply of electricity at 9 cents/kWh would generate over 300 megawatts in additional grid demand and Rs500bn in revenue,” said Aptma Central Chairman Asif Inam addressing a press conference on Tuesday.

Flanked by Aptma North Chairman Kamran Arshad, Senior Vice-Chairman Asad Shafi and Secretary General North Mr Mohammad Raza Baqir, Inam also questioned the justification for a 22pc policy rate when inflation has slowed to 11.8pc. He said the government could save Rs3 trillion in interest payments by cutting down the rate.

On zero-rated status, he asked why the government was holding on to a Rs300bn float of industrial sales tax refund. He proposed that the government collect sales tax at the retail stage, with a potential of over Rs250bn.

Aptma North chairman Kamran Arshad said it is imperative to restore a zero-rated regime on all manufacturing stages of the value-added textile chain and levy sales tax only on the sale of end products fit for consumption by the consumer to arrest the incessant decline in textile production and export and ease the existing situation.

Published in Dawn, June 5th, 2024