APTMA briefs NDU team about cotton production, energy crisis

An interactive session on National Economic Security organised by All Pakistan Textile Mills Association (APTMA) for the course participants of National Defence University (NDU) the other day at the Royal Palm Golf Country Club. APTMA members made presentations on cotton production, energy crisis, international trade and interest rate regime in connection with the textile industry on the occasion.
Chairman APTMA Punjab, S M Tanveer welcomed the NDU delegation, comprising senior army and civil officials, and highlighted various initiatives on sustainability and compliance of the industry including energy and water conservation and setting up of Sustainable Production Centre.
The panel on cotton and man-made fibres told the participants that production importance of cotton can be gauged from the fact that every one million bales of cotton produce one million jobs in the country but unfortunately 90 percent of the budget of Pakistan Central Cotton Committee (PCCC) is consumed on administrative expenses. Similarly, the man-made fibres constitute 70 percent of textile exports world-wide. In Pakistan, he said, no tangible effort has been made and heavy reliance is yet put on cotton for production of textile goods, which is around 69 percent as against global average of 33 percent.
The panel represented the case for availability of all MMFs to the industry as zero rate of duty as the industry has a capacity of consuming 674,000 tons PSF and the solution lies in No Duty No Drawback policy to facilitate local industry. A detailed presentation was made on energy scarcity, pointing out that electricity tariff for industry in Pakistan is 15 cent per unit against 7 to 8 cents per unit in the region. The textile industry was yet exposed to six hours a day electricity load shedding on independent feeders.
In addition, gas supply to textile industry has reduced to 114 days in 2013 against 302 days in 2008. The textile industry in Punjab, as a matter of fact, was receiving 31 percent gas of its demand against 100 percent supply in rest of the country. On the international trade, it was pointed out APTMA was assisting the government in gaining market access to the EU under the GSP Plus and positive news is expected soon. Share of Pakistan in $710 billion international trade is merely 2 percent, which can be enhanced by another one percent with proactive measures once energy security is ensured and a direction is set to double its exports from $13 billion to $26 billion.