The All Pakistan Textile Mills Association (APTMA) has urged the Punjab government to suspend the 0.9% Infrastructure Development Cess imposed on industrial imports, warning that the levy could raise manufacturing expenses, weaken export competitiveness and discourage investment in the province. In a letter dated October 9, 2026, addressed to Punjab Chief Minister Maryam Nawaz Sharif, APTMA Chairman Asad Shafi raised concerns over the application of the charge to imports carrying a Punjab address, regardless of the province through which the goods enter Pakistan. The association has called for collection of the cess to be halted until consultations take place with industry representatives and chambers of commerce.
According to APTMA, the levy was communicated through an email from Pakistan Single Window (PSW) on October 1. The association said the additional charge would place further pressure on Punjab-based manufacturers already dealing with high energy tariffs, financing expenses, taxation and subdued market demand. Industrial businesses depend on predictable input costs to plan production, manage cash flow and fulfil customer orders. A new charge on imported materials and equipment could increase their operating expenses at a time when manufacturers are already managing several cost pressures.
A key concern raised by the association is the application of Punjab’s infrastructure cess to goods cleared through ports in Sindh, where the Sindh Infrastructure Cess is already collected. APTMA argued that imposing the additional Punjab levy on the same consignments could amount to double taxation and place businesses operating in Punjab at a disadvantage compared with manufacturers in other provinces. The association has called for the provincial government to review how the charge applies to imported goods, particularly where another province has already collected an infrastructure-related levy.
The association warned that the cess could affect a broad range of industrial imports, including raw materials, production inputs and capital machinery used by businesses operating in Punjab or maintaining registered offices in the province. Such imports are essential for manufacturers that depend on overseas supplies to maintain production standards, operate equipment and meet delivery schedules. Any increase in the cost of these goods could affect purchasing decisions, production budgets and the overall cost of finished products. The impact may be particularly significant for industries that rely heavily on imported inputs and operate in competitive domestic and international markets.
APTMA said the textile sector could face particular pressure because of its dependence on imported cotton, man-made fibres, dyes, chemicals, spare parts and machinery. These materials and equipment support different stages of textile production, from processing and dyeing to manufacturing finished products for export. Higher import costs could reduce manufacturers’ margins and make it more difficult for exporters to offer competitive prices to international buyers. Businesses may also face challenges in maintaining existing orders if additional expenses cannot be absorbed or passed on to customers.
The association further cautioned that increased input costs could disrupt textile value chains and affect relationships with overseas buyers. Exporters compete on pricing, product quality, delivery timelines and reliability, and higher production expenses can limit their ability to compete with suppliers in other markets. If manufacturers face a sustained rise in costs, they may need to reassess production volumes, procurement strategies or investment plans. APTMA warned that the proposed levy could therefore affect not only individual businesses but also the wider textile and apparel supply chain that supports industrial activity and export earnings in Punjab.
APTMA also argued that the additional charge could discourage industrialisation and create differences in operating costs between provinces. Manufacturers make investment decisions based on a range of factors, including energy availability, taxation, financing conditions, logistics and access to markets. The association maintained that introducing another cost burden could weaken Punjab’s attractiveness for industrial expansion, particularly for businesses already facing difficult operating conditions. It said the measure appeared inconsistent with the government’s stated objectives of promoting exports, reviving industrial activity and attracting investment.
To address these concerns, APTMA has called on the Punjab government to suspend collection of the infrastructure cess through Pakistan Single Window until consultations are held with industry representatives and chambers of commerce. The association has also sought an early meeting with Chief Minister Maryam Nawaz Sharif to discuss the potential consequences for Punjab’s textile and apparel industries. It wants the provincial government to review the measure and consider its effects on manufacturers, import costs and export competitiveness before proceeding with collection.
The request places the treatment of industrial imports and the coordination of provincial levies at the centre of the dispute. For manufacturers, the key concern is whether the additional charge will increase the cost of materials and machinery without creating a corresponding improvement in their operating environment. For the provincial government, consultations with industry could provide an opportunity to assess the concerns raised by businesses and clarify how the cess applies to goods entering through different ports. No decision to suspend the levy was included in the reported announcement. The outcome will depend on the provincial government’s response to APTMA’s request and any subsequent consultations with the affected industries.
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