MULTAN (Commerce News Desk): In a significant move to safeguard the dwindling textile and edible oil value chain, the Pakistan Cotton Ginners Association (PCGA) and the All Pakistan Oil Mills Association (APOMA) have forged a joint alliance. The consensus reached at PCGA House aims to standardize business ethics while mounting a collective front against the current tax regime.
Key Highlights: The Roadmap for Recovery
- Industry in Contraction: PCGA Chairman Sham Lal Mangalani raised alarms over the structural decay of the sector, noting that the number of operational ginning factories has plummeted from 1,200 to approximately 600 due to the historic dip in cotton production.
- Taxation Deadlock: Both associations pledged to accelerate lobbying efforts to abolish Sales Tax and heavy duties on cottonseed, oilcake, and edible oil, which are currently stifling liquidity.
- The Transparency Pledge: In a major shift toward formalization, the leadership resolved that all future transactions will be conducted via proper invoicing. Members committed to paying all applicable taxes while demanding the government remove “extortionate” levies.
- Enforcement Demands: The meeting called for a crackdown on unregistered oil mills to eliminate unfair competition and urged the immediate activation of the Dispute Resolution Committee/Tribunal to settle inter-industry financial frictions.
Commerce News Desk: Deep-Dive Analysis
The convergence of the ginning and oil milling sectors signals a “survival-of-the-fittest” moment for Pakistan’s silver fiber industry.
1. The Supply Chain Crisis
The 50% reduction in operational ginning units is a red flag for the national economy. As cotton production struggles, the reliance on imported raw materials increases, putting further pressure on the Rupee. This joint strategy is an attempt to reduce the “cost of doing business” to keep the remaining units afloat.
2. Fiscal Pressure & Inflationary Ripples
The 18% GST on cottonseed and its derivatives has created a domino effect. By taxing the inputs for livestock feed (oilcake) and cooking oil, the government is inadvertently driving up food inflation. APOMA’s demand for tax abolition is not just an industry plea but a necessity for consumer price stability.
3. Shift Toward Documentation
The commitment to proper invoicing is a strategic masterstroke. By moving toward a documented model, PCGA and APOMA are strengthening their bargaining power with the FBR (Federal Board of Revenue), proving that the industry is willing to be transparent if the tax burden is made rational and sustainable.
Expert Take: “The PCGA-APOMA alliance reflects a shift from individual grievances to institutional lobbying. By focusing on ‘Self-Regulation’ and ‘Dispute Resolution,’ the sector is trying to stabilize itself from within while waiting for the government to provide fiscal breathing room.”
Notable Participants
The high-level huddle included former PCGA chairmen Haji Muhammad Akram, Sohail Mahmood Harl, and Mukesh Kumar, along with APOMA representatives Sheikh Waqas Liaqat and Mustafa Kamal, among other industry veterans.
Reported by: Commerce News Desk – April 2026
Leave a Reply