The All Pakistan Textile Mills Association (APTMA) has asked Punjab Chief Minister Maryam Nawaz Sharif to suspend a new 0.90 percent infrastructure cess on imports, warning that it could increase industrial costs and weaken Pakistan’s export competitiveness.

In a letter dated October 9, APTMA Chairman Asad Shafi said the Punjab Infrastructure Development Cess would add to the financial burden on manufacturers already facing high energy prices, borrowing costs, taxes and weak demand.

The association said the levy would apply to imported goods carrying a Punjab address, even when they are cleared through ports in other provinces, according to an announcement issued by Pakistan Single Window on October 1.

APTMA objected that businesses could effectively pay infrastructure charges twice. Imports cleared through Sindh ports are already subject to the Sindh Infrastructure Cess, and the additional Punjab levy could impose another charge on the same goods, the association said.

The textile industry relies on imported raw materials and equipment, including cotton, man-made fibres, dyes, chemicals, spare parts and machinery. APTMA warned that the extra cost could reduce manufacturers’ margins and make their products less competitive in international markets.

The association also argued that the measure could discourage industrial investment in Punjab and create an uneven business environment between provinces.

APTMA has asked the chief minister to suspend the levy on industrial imports and direct Pakistan Single Window to halt collection until consultations with industrial representatives and chambers of commerce are completed.

Shafi also requested a meeting with Maryam Nawaz to discuss the potential effects on Punjab’s textile mills and textile and apparel exports.

The association said the additional charge could undermine efforts to expand exports and revive industrial activity at a time when manufacturers are already struggling with elevated production costs.