Textile industry warns against levy on imports

Pakistan’s textile industry has expressed concerns to the Punjab government over a proposed infrastructure levy on import goods. The All Pakistan Textile Mills Association (APTMA) has requested Chief Minister Maryam Nawaz Sharif to halt the 0.90% cess on industrial imports with a Punjab address, regardless of the port of entry. In a letter dated October 9, 2026, APTMA Chairman Asad Shafi objected to the levy, citing an announcement from Pakistan Single Window (PSW) on October 1, 2026.

Shafi argues that the cess would exacerbate the financial strain faced by Punjab manufacturers, who are already grappling with high energy tariffs, financing costs, taxation, and weak demand. He is particularly opposed to the levy on goods cleared through Sindh’s ports, which already incur the Sindh Infrastructure Cess. Charging the Punjab cess on the same goods, Shafi contends, constitutes double taxation and disadvantages Punjab industries vis-à-vis those in other provinces.

APTMA warns that the levy could deter industrialization in Punjab, raise the cost of doing business, and create provincial disparities. Export-oriented industries, notably textiles, would bear the brunt of the levy, as the mills rely heavily on imported raw materials including cotton, man-made fibers, dyes, chemicals, spare parts, and machinery.

Shafi asserts that any additional levy on these inputs would inflate costs across the textile value chain, erode margins, and weaken the competitiveness of Pakistani exporters, making it more difficult for textile and apparel firms to retain international clients. He contends that the provision of the levy contradicts the government’s objectives of boosting exports, reviving industrial activity, and attracting investment.

APTMA has urged the chief minister to intervene promptly and called on the provincial government to suspend the levy's collection from PSW until proper consultations with industry representatives and chambers of commerce are conducted. The association has also requested an urgent meeting with Maryam Nawaz to elucidate the potential impact of the levy on Punjab’s textile industry and its textile and apparel exports.

APTMA contends that a review of the levy is imperative to avoid added costs for manufacturers, safeguard export competitiveness, and maintain a level playing field for industries across the country.