Crisis in Textiles: APTMA Demands Super Tax Adjustment Against Pending Refunds to Avert Industry Collapse. -

The All Pakistan Textile Mills Association (APTMA) has formally requested the Federal Board of Revenue (FBR) to adjust the industry’s Super Tax liability against its own outstanding sales tax, income tax, and other pending refunds. Chairman APTMA, Mr. Kamran Arshad, highlighted on Monday, February 2, 2026, that the export-oriented textile sector is currently facing an acute liquidity crunch.

Key Challenges for the Industry:

Financial Pressure: High energy prices, double-digit interest rates, and a global slowdown in export orders have severely weakened the domestic industry.
Liquidity Crisis: Demanding massive Super Tax payments in a single tranche is neither practical nor workable for an industry already struggling to meet basic obligations like salaries and utility bills.
Refund Backlog: Billions of rupees belonging to the textile and apparel sector remain stuck in deferred and FASTER refunds at any given time.

APTMA’s Demands & Warnings:

Adjustment Policy: The association urged the FBR to adjust Super Tax dues against pending income tax, sales tax, and other refund claims, including TUF and DLTL.
Installment Plans: Any remaining liabilities should be converted into easy, business-friendly installments spread over a reasonable period.
Risk of Closure: APTMA warned that without immediate relief, the country could face large-scale closures of textile mills and SMEs, leading to massive unemployment and a shrinking tax base.
Legal Clarity: The association also raised concerns over the calculation of Super Tax under Section 4C, demanding clear guidelines to avoid multiple interpretations and disputes.

The textile industry remains the backbone of Pakistan’s exports, yet stakeholders warn it is currently “fighting a losing battle” against regional competitors who benefit from lower taxes and cheaper energy.