All Pakistan Textile Mills Associations
The All Pakistan Textile Mills Associations (APTMA) is a trade organization representing the largest sector of Pakistan – Textile – encompassing more than 400 textile companies. APTMA plays a pivotal role in safeguarding the business interests of not only textile companies but of other sectors to enable their contribution to the country’s economic prosperity. APTMA, through its political, economic, and social capital capabilities, has always played a leadership role for business facilitation and government-related services.
We take immense pride in achieving industrial goals benefiting the entire nation. Our biggest achievement so far is the formulation of the Textile Policy 2020-25 which has been approved by ECC and In Shaa Allah will be implemented soon. The Policy will support the entire Textile Value Chain enabling textile products to be regionally competitive, resulting in enhanced exports for several years to come and contributing to sustainable export-led economic growth. The Policy encompasses continuous implementation of viable energy tariffs, export/investment strategy including export sustainability, implementation of Special Economic Zones (SEZ), discounted finance packages ensuring liquidity and credit availability for SMEs, and reduction in Turnover Tax. The achievement of this unprecedented milestone is completely attributed to the relentless efforts and dedication of APTMA.
We have always been proactive in addressing the most pressing issues threatening the viability of our businesses in a timely manner. APTMA’s initiative in reviving the cotton crop is a pro-poor strategy that will not only uplift the country’s economic outlook in the coming years but will also serve our future generations. Once the lifeline of our farmers, the cotton crop has seen its worst in recent years. APTMA has thus formed a Cotton Task Force as a strategic alliance with the Punjab government to revamp and revive the production and yield of cotton crops in Pakistan. We have already made strides by getting in touch with embassies of many countries including the USA, China, Turkey, Brazil, Uzbekistan, Turkmenistan, and Brazil to seek and opt for their seed development technologies, establish affiliations with their top scientific research institutions and enhance bilateral trade. Addressing this critical issue, we are putting together a Cotton Secretariat spearheaded by our Patron-In-Chief, Mr. Gohar Ejaz, along with a dedicated team of researchers and seasoned consultants to sustainably steer the sector in the right direction. Now we also participate in and contribute to the monthly Cotton Crop Assessment Meetings.
Being the largest association, we ensure our presence is not only valued but has a material impact. We were the strongest proponent of having regionally competitive tariffs for Export Oriented Units in the country, which, after years of APTMA’s persistent struggle, were implemented resulting in enhanced exports. Through our continuous correspondence, we played a significant role in convincing the State Bank of Pakistan to reduce interest rates to benefit industries, especially during the pandemic. Similarly, we repeatedly voiced credit and liquidity crises hampering business operations during the pandemic, which resulted in launching schemes such as TERF/ITERF, Salary & Wages Package, etc. Moreover, while ensuring inclusivity, we requested a special focus on SMEs and those textile units that are struggling for survival - we liaised with the SBP and the Ministry of Commerce to convince them for launching a separate buyout scheme amounting to USD $300 million, which is under consideration. Most significantly, we arranged a focused meeting with the Deputy Director of SBP to request an extension in LTFF for indirect exporters – which has been affirmed by DG, SBP. Furthermore, we preemptively approached the Ministry to oppose Duty on Yarn as it would prove counterproductive to the industry, and the same has been abolished by the government. We further nudged the Ministry on fronts like Duty Drawbacks on exports to Export Processing Zones, an extension of zero-rating certificates, granting zero-rated facility to consumers of LIEDA and their reimbursement against tariff differential, etc.
There have been numerous occasions where APTMA’s timely intervention worked for the welfare of the industry. A recent instance is when NEPRA tried implementing increased charges on wheeling and Captive, the team at our Principal Office timely intervened and prevented these exorbitant charges that could have cost the industry billions. Likewise, the decision on GIDC was challenged by APTMA, making a strong case to only obtain a justified amount from consumers, again saving the industry billions. On another occasion where NEECA bombarded the industry with efficacy audits of captive power plants, APTMA categorically refuted on logical and legal grounds and has delayed the same, again saving the industry billions. The core team at Principal Office, with their professional interconnectedness with government and non-government institutions, is working without any vested interest to provide a level playing field to the textile industry.
APTMA has also fought on the frontline for the industry with several government entities, notably FBR, OGRA, NEPRA, NTC, as well as the Ministry of Energy. We warranted a refund of long outstanding dues from FBR, raised concerns, and requested the deletion of extra tax on electricity, alongside making them aware of the shortcomings in their FASTER system, which FBR later publicly acknowledged. We regularly attend hearings to raise concerns/issues faced by the industry, e.g., we projected our reservations at OGRA in the petition for Estimated Revenue Requirement (ERR), and in another instance, halted OGRA’s decision of wrongfully increasing the Natural Gas tariff. We also communicated to RDA Cell to increase sample quota limits which are hampering export drive. Another successful effort of APTMA was the reduction of UFG from 14% to 6% in RLNG pricing that benefited the industry. And we are also pursuing NTC for tariff rationalization of Textile Value Chain.
APTMA has been achieving many uphill tasks for the stability of the industry and the promotion of businesses. It acts as a watchdog and continuously takes action for the protection of the sector. We at APTMA make sure to contribute to society at large. We have a dedicated team of national and international graduates working as researchers at the Principal Office under the leadership of Mr. Shahid Sattar, Executive Director, to analyze industry dynamics, critically review decisions affecting the industry, and undertake data analysis. APTMA has more than 65 newspaper and magazine articles in a span of just 2 years covering almost every aspect of the economy, and the compendium of the same will be published by the end of December 2020.
We also have a substantial media footprint from TV appearances in top-rated TV channels including DAWN and Dunya News, to articles in all the leading newspapers and magazines. Mr. Ejaz and Mr. Sattar have always been vocal about current affairs in the country and have opined on many critical issues affecting the economy.