Nasser Sheikh Chairman Banking Committee for All Pakistan Textile Association (Apta) has said that the textile industry of the country has been facing the worst crises for the last two years and suffering from serious financial problems due to prevailing economic circumstances.
While talking to media here on Monday he said that 74 numbers of spinning units, 27 numbers of weaving shuttles & air jet looms, 52 open-end units and 102 power looms have suspended operational activities or functioning partially and are on the verge of closure.
He further said that textiles sector was the mainstay of the country's economy. Over 66% export earnings coming from this single sector and hence we can not afford to ignore this vital sector of our economy," he stated.
Unfortunately due to the closure of the said units thousands of people have become unemployed who were involved in operational activities directly and indirectly, he claimed.
He pointed out that the leasing companies had been playing adverse roles and aggravating the situation without any reason. Leasing companies while advancing money to borrowers have obtained signed cheques in addition to agreed securities and they now have started to lodge FIR'S against the directors of the limited companies which have been and are against law and business norms.
He said that Apta intended to bring it to the notice of the officials of the concerned institutions of the government that presently cotton ginners around 100 in number along with arms have arrived in Lahore and they got cheques signed from authorised official of the textile units at gun point for the purpose of filing law suits against the directors of the limited companies.
"We believe that if the current situation lasts for further 15 days, the circumstances would go out of control and the jails of the country will be full of businessmen" he maintained. Now we feel that the setting up and conducting business seems to be a crime particularly when no exist is available like insolvency law.
He explained that since the textile mills have been passing through the worst recession, facing financial crunch for the last two years, the banks and financial institutions have been further aggravating the situation particularly those which have advanced working capital limits to textile mills.
He said that the bank officials have been adjusting all cash against the adjustment of mark-up, which had been deposited for getting delivery of pledge stocks, the textile mills are facing difficulties even in getting raw materials from banks for conducting operations.
This practice of the banks is against the law, directions of the State Bank of Pakistan and business norms. He said; 'We urge the government to take notice for above mentioned situation to save the textile mills from closure'.
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