Many of the spinning mills have become sick and gone into default. It is estimated that over 1.5 million spindles have already closed down while many others are on the verge of closure. These views were expressed by Chairman All Pakistan Textile Association (Apta) Adil Mahmood in a letter written to the Governor State Bank here on Thursday.
He explained that the textile sector and in particular, the spinning sub-sector is in deep crises due to the extraordinary increase in costs of production during the last three years along with unfair subsidies being provided by our regional competitors to their textile industry including spinning.
Showing his apprehension in his letter he stated that many of our members had simply given up in the face of all the odds stacked against them. They want a respectable exit strategy to give up their company assets as well as save to be held accountable either in civil or in criminal courts for the company's losses and liabilities. He appealed to the Governor to devise practical exit strategies for the companies, which have no any other choice but to close their business.
The present banking recovery laws contain many criminal provisions which were, perhaps required when the banks were nationalised but in current scenario the provisions are no longer required when the banks can look after their own interests through civil proceedings.
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