Published June 10, 2026 Updated about an hour ago By Hassan Abbas LAHORE: A majority of participants at the BUSINESS RECORDER FORUM on challenges facing Pakistan’s textile sector backed the normal tax regime over the fixed tax regime, calling for a more equitable and transparent tax structure that accurately reflects actual income levels. DIRECTOR BUSINESS RECORDER RESEARCH ALI KHIZAR leading the session, brought together leading industry figures, tax experts and agricultural specialists to deliberate on the mounting pressures confronting one of Pakistan’s most vital export sectors. Chairman of the All Pakistan Textile Mills Association (APTMA), Kamran Arshad, sounded the alarm over shrinking cotton cultivation areas, warning that the government’s decision to permit construction of sugar mills in traditional cotton-growing regions is directly threatening the raw material supply the textile sector depends upon. Arshad described the fiscal environment as unsustainable, stating that the government currently takes back as much as 60 percent of earnings through various taxes. “How can a businessman realistically operate and grow under such a heavy financial burden?” he wondered, urging the government to provide electricity and gas at rates competitive with regional peers as a prerequisite for boosting exports. Arshad also rejected the newly-enacted Punjab Infrastructure Development Cess, warning that a 0.90 percent levy on goods manufactured, imported or exported through the province would accelerate deindustrialisation and cost jobs. Signed into law by Governor Punjab Sardar Saleem Haider Khan, the cess, he argued, creates a double taxation burden for Punjab-based manufacturers who already pay the Sindh Infrastructure Cess on consignments transiting that province an inequity that Sindh-based competitors do not face. He cautioned that the widening cost gap between Punjab and manufacturers in Sindh, Khyber Pakhtunkhwa and former FATA regions would push existing businesses to relocate and deter new investment. Shahzad Saleem, Chairman of Nishat Chunian Group, delivered a blunt assessment, stating that Pakistan’s economy is in terrible shape owing to…