PPMA Submits Budget Proposals for 2025-26

Islamabad: The Pakistan Plastic Manufacturers Association (PPMA), representing a consortium of over 300 plastic producers nationwide, has officially presented its recommendations for the Federal Budget 2025–26 to the Federal Minister for Finance & Revenue, Muhammad Aurangzeb, alongside other pertinent ministries.

The proposals highlight the necessity of tariff rationalization, standardization of SME definitions, enhanced financial access, and simplified tax compliance procedures to stimulate comprehensive industrial advancement and boost competitive capabilities.

Key Recommendations
  • Tariff Adjustments: PPMA has advocated for the elimination of customs duties on raw materials not produced within the country, while also suggesting a streamlined duty framework to protect domestic inputs.
  • SME Definition Harmonization: The association has pointed out inconsistencies in SME definitions among governmental bodies, pushing for a standardized definition that mirrors current economic conditions and broadens SME access to support initiatives.
  • Tax Compliance Easing: Addressing challenges in tax compliance, PPMA has proposed exempting small and medium-sized manufacturers from newly implemented complex filing requirements, advocating for a phased compliance system based on size to alleviate burdens on SMEs.
Financial Accessibility and Creditworthiness
  • Subsidized Financing: PPMA is pushing for subsidized working capital loans at a 6% markup rate, coupled with adaptable repayment options, as financing remains a substantial obstacle.
  • Collateral Reforms: The association has also called for reforms in collateral prerequisites, recommending machinery-based financing solutions and the development of an online portal to promote transparency and oversight of subsidized credit distribution.
  • Credit Rating Platform: To bolster SME creditworthiness, PPMA has suggested the creation of a publicly accessible electronic credit rating platform, modeled on international benchmarks.
Incentives for Industrial Development
  • SEZ and Industrial Park Incentives: PPMA has advocated for incentives related to land acquisition and infrastructure development within Special Economic Zones and industrial parks, including subsidized land provisions and extended financing arrangements.
Chairman’s Statement

Syed Nabeel Hashmi, Chairman of PPMA, remarked, “The plastic manufacturing sector plays a pivotal role in driving industrial expansion and job creation in Pakistan. Our recommendations aim to foster a more conducive environment for SMEs, encourage equitable competition, and unlock avenues for innovation and export. We are eager to collaborate closely with the government to ensure the forthcoming budget offers significant backing for sustainable economic progress.”

He reiterated PPMA’s dedication to working in partnership with the government to promote lasting economic advancement.