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PTEA Urges zero-rated GST on electricity for Export

PTEA Urges zero-rated GST on electricity for Export industries.

Pakistan Textile Industry Seeks Relief: Refunds, Zero-Rated GST on Energy Bills

The Pakistan Textile Exporters Association (PTEA) is urging the government to address several challenges faced by the industry, including delayed refund disbursements and high energy costs.

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Here’s a summary:

Key Concerns:

  • Slow Refund Disbursements: PTEA urges timely release of export refunds to improve cash flow and competitiveness.
  • High Energy Costs: The association proposes a zero-rated GST on energy bills for export industries to reduce production costs.
  • Negative Growth: PTEA expresses concern over the declining performance of the large-scale manufacturing sector, including textiles.
  • Economic Challenges: Rising debts, tax issues, and a widening current account deficit are highlighted as hurdles to growth.


  • Sustainable Energy Tariffs: PTEA calls for negotiating favorable energy tariffs with the IMF to support industrial competitiveness.
  • Rationalize Cross-Subsidies: The association suggests adjusting energy subsidies to benefit export-oriented industries.


The textile industry plays a crucial role in Pakistan’s economy, contributing significantly to GDP and exports. Addressing these concerns could help revive the sector, promote growth, and create jobs.

Mere escalation of energy tariffs isn’t sufficient; stringent enforcement is imperative to curtail T&D losses and ensure full bill recovery.

The recent surge in gas and electricity rates spells economic disaster, lacking foresight.

Mukhtar underscores the detrimental effects of liquidity crunches on export production, citing delayed refund disbursements as a major financial strain for exporters.

He advocates for timely refunds and zero-rated GST on energy bills for export industries. Furthermore, he underscores the necessity of easy access to working capital for industrial growth and job creation.

Mukhtar emphasizes mobilizing domestic resources to diminish import dependency and foster domestic industries. He asserts that efficient governance practices and digitalization can bolster efficiency, curb corruption, and enhance the business climate.

Mahmood advocates for SOE privatization to enhance efficiency, attract investment, and alleviate government burden.

He highlights rival countries’ success in global trade through state support and urges similar measures for Pakistan’s economic resurgence.

PTEA urges the government to prioritize the industrial sector, initiating immediate structural reforms to stimulate industrial rejuvenation, lower business costs, and safeguard employment.

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