The Ministry of Finance has invited representatives of All Pakistan Textile Mills Association (Aptma) for dialogue on key issues and problems faced by textile industry. On Wednesday, textile industry observed ''Black Day'' across the country on the appeal of Aptma to protest against the government policies that are directly hurting the domestic textile industry, resulting in lower exports.
Talking to Business Recorder, Tariq Saud, Central Chairman Aptma, said that government had showed its willingness to resolve the issues being faced by the textile industry. "Haroon Akhtar Khan Special Assistant to the Prime Minister for Revenue and Minister of State has contacted us and invited Aptma for negotiation on the key issues," he said and added that a delegation of Aptma will meet Dar on Saturday in Islamabad to discuss the problems and issues being faced by the industry.
He said that domestic textile industry was facing worst ever crisis of its history and unable to compete in the world market due to high cost of doing business in Pakistan. "We have three major demands including withdrawal of GIDC and surcharge on power and imposition of 25 percent regulatory duty on import of yarn and garment from India," he added.
Chairman Aptma said that Pakistan''s textile export share in global market was gradually decreasing and reached below 2 percent, whereas export share of our regional competitors was increasing rapidly. "This is an alarming situation and Pakistan''s textile industry will further lose its export share, if preventive measures were not taken immediately," he warned.
He pointed out that after the levy of GIDC and 23 percent increase in gas tariff, cost of gas has gone up to $6.7 per MMBTU for textile industry and $7.7 per MMBTU for Captive Power Plant. In addition, electricity tariff in the regional competing countries is between 6 to 9 Cents whereas Pakistan''s industry is paying Rs 15 per unit or 14.5 Cents per Unit.
Presently, another major issue is unplanned import of yarn from India. Yarn from India is being import at a 5 percent customs duty whereas India has imposed 28 percent duty on yarn import making export of yarn to India from Pakistan unviable, he mentioned. Chairman Aptma said that Pakistan''s textile industry could not compete in the world market with the Indian and other regional players due to high cost of doing business.
"Presently, some 30 percent capacity of textile industry, having export potential of $3.467 billion, in all six major sub sectors is almost closed owing to multiple reasons including energy supply mismanagement, comparatively high cost of energy, losing market access and lack of new investment," he added. "This is a good indication that the government has realised the problems of the textile industry and accordingly invited Aptma for negotiations. We will discuss all these issues with the government officials and will try to find out solutions that will be in the larger interest of the entire textile industry," Tariq said. He thanked the industries and exporters that participated in the protest announced by the Aptma.
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