APTMA comes down hard on govt over ‘weak textile policy’

Urges reduction in utility tariffs to enhance global competitiveness, support weaving, spinning industries


Our Correspondent August 29, 2017
PHOTO: REUTERS

KARACHI: All Pakistan Textile Mills Association (APTMA) Senior Vice Chairman Zahid Mazhar has reiterated that high input costs are resulting in the closure of a large number of textile mills engaged in the manufacturing of yarn and fabrics.

Both the spinning and weaving sectors have faced the brunt of a high cost of doing business despite being integral to the textile value chain, a press release quoted him as saying. He added that the situation has made the sectors unviable throughout the country.

‘Textile industry consumes more water than needed’

He stated that the production of yarn and fabric is substantially higher than local consumption, asking the government to facilitate exports of the surplus amount. Mazhar warned of large-scale closures of manufacturing units resulting in mass unemployment and drastically reduced consumption of local cotton if the current situation persisted for an extended period of time.

He asked the government to encourage investment in spinning and weaving sectors so that maximum cotton can be converted into yarn and downstream products. This will not only facilitate cotton-growers and the spinning industry but also assist the whole textile chain and the national economy in general, he added.

He urged the government to revisit the agricultural and economic policies to ensure that production targets of cash crops especially cotton are achieved.

The Aptma official said that a few years ago a production milestone of 15 million bales of cotton was achieved which must be replicated consistently and increased further to 20 million bales.

“The textile industry has been hit hard due to the high cost of energy and high tariffs of both gas and electricity are making Pakistan’s exports uncompetitive in the global market,” Mazhar deplored. “The cost of production of both gas and electricity is up to 30% higher than our regional competitors including Bangladesh, India, and Vietnam.”

He urged Prime Minister Shahid Khaqan Abbasi to issue instructions to the concerned authorities to implement the textile package of Rs180 billion announced earlier this year for increasing exports.

APTMA ‘rejects’ budget, questions credibility of PM’s textile package

He demanded that the notification for release of refunds under Duty Drawback of Taxes Order from July 01, 2017 to June 30, 2018 be issued without the condition of growth in exports of 10% in 2017-18 as compared to 2016-17 and payment under this package be released without any further delay.

Mazhar said that the delay in the implementation of textile package is rapidly eroding the exports of textile sector. The trade deficit for the last fiscal year was recorded at an all-time high of $32.58 billion, with imports at $53 billion and exports recorded at a lowly figure of $20.45 billion, lowest since 2009-10.

“While our exports are falling, the textile exports of other countries like Bangladesh, India and Vietnam are rapidly increasing every year,” he highlighted.

Published in The Express Tribune, August 29th, 2017.

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