Key Takeaways
- TMA calls for urgent policy measures to address rising business costs.
- Key issues include high energy costs, delayed tax refunds, and inefficient logistics.
- Proposals include review of electricity tariffs and export incentives.
Omer Anwar Lari, Vice Chairman of the Towel Manufacturers’ Association of Pakistan (TMA), has called for immediate and comprehensive policy measures to address the rising cost of doing business, ease liquidity constraints, and restore the international competitiveness of Pakistan’s export-oriented industries.
Lari emphasized that high energy costs, delayed tax refunds, expensive financing, inefficient logistics, and inadequate export incentives are placing increasing pressure on manufacturers, exporters, investment, and employment.
He stressed that Pakistan’s textile and home-textile exporters operate in a highly competitive international environment where production costs, delivery timelines, and policy consistency directly influence sourcing decisions.
The TMA has expressed serious concern over the burden of industrial electricity tariffs and cross-subsidies imposed on industrial consumers under the B3 and B4 categories. The industry estimates that approximately Rs. 56 billion is associated with the cross-subsidy borne by these categories for supporting B1 and B2 consumers.
The association has called for a review of the 20 percent off-the-grid levy on captive power plants, gas and RLNG pricing mechanisms, and Unaccounted-for-Gas (UFG) charges, which add to manufacturers’ operating expenses.
TMA has also highlighted the adverse impact of high sea-freight charges, frequent General Rate Increases (GRIs), transshipment delays, and excessive dependence on road transportation. These challenges increase shipment costs, create uncertainty in delivery schedules, and affect exporters’ ability to meet international buyers’ requirements.
The association has proposed dedicated daily cargo train services connecting major industrial centres, including Faisalabad, Lahore, Multan, and Sialkot, to facilitate efficient cargo movement, reduce transportation costs, and strengthen Pakistan’s export logistics infrastructure.
Persistent delays in sales tax refunds, including Refund Payment Orders (RPOs) and deferred refunds, income tax refunds, and customs duty drawbacks are creating severe liquidity problems for exporters. These delays tie up working capital that businesses need to meet operational expenses, pay employees, purchase inputs, and maintain uninterrupted production.
TMA has urged the relevant authorities to expedite outstanding refunds and duty drawbacks, simplify procedures, and establish clear processing timelines. The Association has also called for a review of restrictions affecting locally procured inputs under the Export Facilitation Scheme to ensure that exporters are not unnecessarily burdened by additional costs and compliance difficulties.
High energy costs, delayed tax refunds, expensive financing, inefficient logistics and inadequate export incentives are placing increasing pressure on manufacturers, exporters, investment, and employment.
Omer Anwar Lari, Vice Chairman of the Towel Manufacturers’ Association of Pakistan (TMA)
