PHOTO: AFP
LAHORE: The All Pakistan Textile Mills Association (Aptma) spokesman has said that it is impossible to achieve the export target of 12% of Gross Domestic Product, given the lackluster attitude of the government.
The target cannot be achieved by allocating a mere Rs4 billion in the new budget against the Rs180 billion Prime Minister’s Textile Package announced on January 10, 2017.
Textile ministry opposes duty on cotton import
“Allocation of Rs4 billion under the textile industry package is nothing short of a joke,” he added.
He deplored that the federal budget 2017-18 has offered nothing for industrial growth and increase in exports. Instead of announcing initiatives for immediate restoration of the textile industry’s viability, the government has further burdened it with increase in turnover tax, customs duty and sales tax on import of cotton and levy of further taxes.
The industry is already plagued with a liquidity crunch amidst uncertainty relating to clearance of billions of rupees of sales tax refunds.
The spokesman said that both the current account and trade deficits could be minimised by strengthening the textile industry, which has the potential of earning precious foreign exchange for the country.
The government should ensure an enabling environment for the industry and new investment on priority, he stressed.
He mentioned that the high cost of doing business was already shutting out feeble manufacturing units one after the other.
The government should also protect domestic commerce through tangible measures to check dumping of textile raw materials and products, he added.
According to the Aptma spokesperson giving the central role the textile industry plays in the country’s exports the prime minister must allocate funds to honour his Rs180 billion textile package announced earlier this year.
Money borrowed by textile sector may be going to real estate
“The textile industry is in dire need of viability restoration, availability of energy at internationally competitive rates and measures leading to new investment initiatives.”
Apmta spokesman said all textile associations are up in arms against such an anti-industry, anti-investment and anti-export budget.
Published in The Express Tribune, May 30th, 2017.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS (1)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ