ICAC delegation engages APTMA on Pakistan’s cotton sector challenges

A high-level delegation from the International Cotton Advisory Committee (ICAC), led by Executive Director Eric Trachtenberg, visited the All Pakistan Textile Mills Association (APTMA) headquarters to discuss Pakistan’s cotton and textile industry. Shahid Sattar, APTMA Secretary General, highlighted the adverse impact of the 18 per cent General Sales Tax (GST) on domestic cotton, which has hurt production and competitiveness. He stressed that while imports under the Export Facilitation Scheme (EFS) are tax-free, local inputs face burdensome taxes and refund delays, leading to financial losses and job cuts. He urged for a level playing field by restoring EFS to its June 2024 structure and adopting India’s tax model.

Trachtenberg acknowledged these concerns and announced ICAC’s plan to publish a policy paper with strategic recommendations. Kanwar Usman, Head of Textiles at ICAC, emphasized the Ministry of Commerce’s role in resolving these issues.

The delegation praised APTMA’s efforts in reviving cotton production and agreed on a collaborative approach to strengthen the sector. Both sides emphasized that Pakistan’s economic stability depends on revitalizing the cotton industry, which supports millions of livelihoods and drives agricultural growth.