TMA for reforms to restore export competitiveness

Omer Anwar Lari, Vice Chairman of the Towel Manufacturers' Association of Pakistan (TMA), has urged the government to take policy steps that lower business costs, ease cash shortages and restore the competitiveness of export industries. He pointed to costly energy, late tax refunds, expensive borrowing, weak logistics and thin export incentives as pressures on manufacturers, exporters, investment and jobs. Business Recorder reported that he called for decisive action with clear timelines.

TMA has voiced serious concern over industrial power tariffs, where the industry estimates roughly Rs56 billion is tied to cross-subsidies borne by B3 and B4 consumers to support B1 and B2 users. The association wants the 20 percent off-grid levy on captive plants reviewed, along with gas and RLNG pricing and UFG charges. It also flagged high sea freight, frequent GRIs, transshipment delays and road dependence, and proposed daily cargo trains linking Faisalabad, Lahore, Multan and Sialkot.

Financing is another concern, as exporters still face 5.5 to 8.5 percent through the Export Finance Scheme, although a 4.5 percent end-user rate was announced. Delayed sales tax, income tax and customs drawback refunds are tying up working capital needed for wages, inputs and production. TMA has also recommended a 6 to 8 percent drawback on local taxes and levies (DLTL), and asked the government to examine merging WWF, WPPF, Social Security and EOBI contributions into one 0.03 percent deduction, subject to legal and fiscal review.