APTMA Urges PM’s Intervention to Resolve Cargo Crisis

ISLAMABAD: The All Pakistan Textile Mills Association (Aptma) has urgently requested Prime Minister Shehbaz Sharif’s involvement to clear blocked highways and reinstate the movement of import and export cargo, which has been halted since April 19, 2025.

During a press briefing, Aptma Chairman Kamran Arshad underscored the seriousness of the matter. He revealed that over 25,000 export containers are currently stranded across Sindh, unable to reach ports due to widespread cargo disruptions. Additionally, approximately 50,000 containers carrying vital imported goods, raw materials, and other essential supplies are held up due to extensive road closures within the province.

Arshad cautioned that even with an immediate reopening of routes, it could take up to 25 days to clear the existing backlog. He stated that these delays are impacting essential exports and manufacturing inputs. “This situation constitutes a significant national emergency that requires immediate attention,” he emphasized.

He further mentioned that the disrupted supply chain is severely impacting industrial activities, jeopardizing export commitments, reducing production levels, and potentially causing economic losses totaling hundreds of millions of dollars.

“This crisis is significantly damaging Pakistan’s standing in international markets and presents a substantial threat to the national economy,” Arshad stated, appealing to Prime Minister Shehbaz Sharif, Sindh Chief Minister Murad Ali Shah, and PPP Chairman Bilawal Bhutto Zardari for their immediate personal involvement.

Arshad also pointed out structural problems within the Export Facilitation Scheme (EFS), highlighting a damaging disparity. While imports continue to benefit from duty- and tax-free treatment, sales tax exemptions on local supplies have been eliminated. This, he noted, has critically weakened the domestic textile sector.

“The spinning industry and cotton farming are being particularly affected,” he clarified. He disclosed that around 120 spinning mills, responsible for 20–25% of total yarn production, and over 800 ginning factories have already ceased operations. Many of the remaining mills are operating at only 50% capacity and are at risk of imminent closure.

“If this trend continues, local cotton will lack buyers, leaving cotton farmers impoverished and resulting in extensive job losses,” he warned.

Arshad further warned that the existing policy imbalance is compelling exporters to rely on imported raw materials, thereby weakening domestic industries and putting pressure on rural economies. He said that the consequences extend beyond just the textile industry, threatening the livelihoods of numerous people.

APTMA has asked the government to reinstate the EFS to its status as of June 30, 2024, by reintroducing zero-rating/sales tax exemptions on local supplies. As an alternative, the association proposed levying equivalent taxes on imports to establish a level playing field. Arshad also advocated excluding yarn and cloth imports under the EFS to protect domestic producers.

Speaking at the press conference, Aptma Chairman-North Asad Shafi added that many export orders have been cancelled because of the logistical paralysis in Sindh. He cautioned that international buyers are looking at alternative suppliers, which risks the long-term loss of business.

“If this situation is allowed to continue, Pakistan faces a genuine risk of deindustrialization and a major drop in export revenues,” Shafi stated, urging quick corrective measures.

Leading exporters, including Ahmad Shafi, Anjum Zafar, Ali Ahsan, and Ahsan Shahid, shared these concerns. They warned that the suspension of cargo movement has already severely impacted export activities and could result in irreversible economic setbacks if it is not immediately resolved.