The federal government has paused the recovery of RLNG (Re-Gasified Liquefied Natural Gas) cost arrears from textile producers, following lobbying by industry representatives during a high-level meeting with Finance Minister Muhammad Aurangzeb.
Industry Wins Temporary Relief
Executives from leading textile and garment groups, led by Shahzad Saleem of Nishat Chunian Ltd, pressed the government to stop collecting the disputed arrears during talks in Islamabad. As a result, mills operating under the All Pakistan Textile Mills Association (APTMA) were told they do not need to make any arrear payments or instalments to SNGPL until further notice, according to participants.
Meeting Focus: Exports and Competitiveness
The session brought together representatives from major textile players along with senior officials from the Finance Division and the Federal Board of Revenue (FBR).
Industry leaders used the opportunity to underline both the challenges weighing on Pakistan’s largest export sector—such as high input costs and policy uncertainty—and the opportunities for growth if support measures are aligned with global competitiveness needs.
Minister’s Response
Aurangzeb, acknowledging the textile sector’s central role in exports and job creation, assured the delegation that the government intends to back the industry through policy continuity and reforms. He cited ongoing efforts to cut structural hurdles, streamline taxation, and design an industrial policy that responds directly to market and industry requirements.
While the Finance Division’s official statement highlighted the government’s commitment to reforms and export promotion, it stopped short of mentioning the arrears suspension—an omission that industry officials see as intentional, leaving the measure as an informal understanding for now.
Why It Matters
The dispute over RLNG cost recoveries had threatened to worsen liquidity issues for textile manufacturers already struggling with energy prices and slowing global demand. The pause offers temporary breathing space, but whether it translates into long-term relief will depend on how the government balances fiscal needs with export-sector competitiveness in its upcoming industrial strategy.
