Pakistan’s yarn imports rise as APTMA seeks policy reforms

Pakistan's yarn imports have risen from 8 million kg in January 2024 to 32 million kg in January 2025. The All Pakistan Textile Mills Association (APTMA) warns that this trend, driven by sales tax disparities, is crippling local spinning mills, with over 100 already shut down.

APTMA, in a meeting with Finance Minister Senator Muhammad Aurangzeb, urged the government to restore zero-rating on local supplies under the Export Facilitation Scheme (EFS) or impose the same tax regime on imports. The association also demanded the removal of the one percent advance tax on export proceeds and immediate clearance of pending refunds, citing delays of over six months.

The spinning sector, with 12 million spindles, plays a crucial role in Pakistan’s cotton economy, consuming over 16 million bales annually. However, high energy costs and tax burdens have rendered it uncompetitive. APTMA proposed direct LNG imports and procurement of 35 percent new domestic gas discoveries under third-party access to lower costs.

Without urgent intervention, Pakistan’s textile industry faces de-industrialization, job losses, and declining foreign exchange earnings, APTMA warned, stressing the need for policy reforms to level the playing field for local manufacturers.