The Federal Minister for Finance Ishaq Dar has invited the All Pakistan Textile Mills Association leadership for a meeting in Islamabad on Saturday (today) to mull over the textile industry issues and avert its strike call of August 7. The Association has announced to hold a countrywide strike of textile industry on August 7, to highlight that high cost of doing business has challenged the viability of the textile industry. Chairman of the Association S M Tanveer had announced the strike a day earlier after holding an emergent general body meeting of the Association.
The industry sources said Federal Minister for Finance Ishaq Dar, who is known as deputy prime minister of the government, would hold a meeting with the Association representatives on Saturday afternoon. Already, he is facing hardships in convincing the traders for not holding a shutter down strike on August 1 and 5 respectively. The textile industry circles said they were fed up with unprecedented power cuts over the last five years, followed by shifting of the inefficiencies of the system on them in shape of electricity surcharges and taxes.
"We are fed up with the situation to the extent that we have decided to hold strike and lodge a protest against the current situation," said Sh Muhammad Akbar, Chairman of the Punjab chapter of the Association. Another Amir Fayyaz said the difference between the captive power dependent mills in Sindh and Punjab has reached to Rs 140 billion, as the millers in Punjab are producing a unit at a double cost against the millers in Sindh.
Yasin Siddique from the Sindh chapter of the Association pointed out that the cost of gas for them has also been increased to Rs 8 per unit after the imposition of gas infrastructure development cess by the government. Central Chairman of the Association S M Tanveer said the regional competitors including India, Bangladesh and Vietnam had invested heavily by introducing the Technology Up-gradation Fund Scheme. "In Pakistan, no such investment has been made by the government and the textile mills are unable to compete with decades old machines against the installation of new ones by the competitors," he added.
"India has offered Rs 400 billion in the shape of rebate to its textile industry against the government of Pakistan which has imposed Rs 170 billion taxes on the textile industry." Group leader of the Association Gohar Ejaz pointed out that the textile industry of Pakistan was unable to perform due to non-availability of liquidity. "Resultantly, the share of Pakistan's textile industry was six percent some seven years back and no change has taken place in it even today," he added.
"This situation has offended the textile millers and they are ready to close down their operations countrywide on 7th of August," he said and added that the unanimity of the textile industry is unprecedented. The government is taxing five to 10 percent to the textile industry without refunding it to the export-oriented industry. "They have made us a base for revenue generation, which is a rare treatment to an export-oriented industry." Similarly, the domestic commerce is also presenting a terrible picture, which is exposed to unprotected environment as the international products are entering the market either at zero rate or through under invoicing. It is interesting to note that not only the spinners but the weavers, readymade garments, towel and knitwear manufacturers are set to join the All Pakistan Textile Mills Association on August 7 to hold strike.
Comments
Comments are closed.