Budget termed ‘extremely regressive’
The ECC also approved a budget of Rs623 million for the idle 3100 employees of the closed Pakistan Steel Mills. The mill has been closed since June 2015, and the PML-N government has not included it in the active privatisation list. Photo: AFP
The All Pakistan Textile Mills Association (Aptma) has termed the FY25 federal budget “extremely regressive” that can trigger the collapse of the textile sector and its exports, with implications for employment, external sector stability and the overall economic and political stability.
After peaking at $19.3 billion in fiscal year 2021-22, textile exports plummeted to $16.5 billion in FY23. The trend continued throughout FY24, with monthly exports consistently falling $600 million below the installed capacity. “This drastic decline highlights the urgent need for government intervention to support the sector,” it said in a statement.
Industry players regretted that no measures had been suggested to resolve the industry-wide energy crisis. Grid power tariffs have soared to 16.4 cents per kilowatt-hour (kWh) and are feared to increase another 2 cents following tariff rebasing in July.