APTMA's CEC rejects textile package

The spokesman of All Pakistan Textile Mills Association (APTMA) said that the Central Executive Committee (CEC) of the Association met Friday and rejected unanimously the textile package being extended by the previous government, saying that it would reverse 15 percent growth in exports sooner than later.
The APTMA CEC said the previous government had repeatedly assured the textile industry of the continuation of the original package, announced 18 months back in January 2017. The previous government had further assured that it would strictly be available for exports from indigenous materials.
"It was agreed between the APTMA leadership and the previous government that rebate would be offered on indigenous materials," he said and added, "But the package has revealed that it would be extended to the Indian products."
Furthermore, he said the CEC has also criticised the reduction in rebate and exclusion of yarn and fabric from the list.
The CEC also rejected the imposition of 11 percent duty, on import of cotton from 15th of July, as the domestic cotton production in coming season is expected to be even less than 10 million bales and the industry will have to import more than 5 million bales to meet the shortage. He said the APTMA CEC met with group leader APTMA Gohar Ejaz and Aamir Fayyaz in the chair to consider developments regarding imposition of duty on cotton and changes in the export package by the outgoing government.
He said the CEC has apprehended that the imposition of import duty on cotton would erode the viability and competitiveness of industry and nullify the gains in exports during the last one year.
He said the APTMA had agreed with the outgoing government that there would be no refund on yarn and Grieg cloth provided that the payment of refund on made ups and printed and dyed fabric is subject to use of domestic yarn and Grieg cloth.
He said deletion of the condition of use of only domestic material in case of any rebate was deleted at the last minute is not in the interest of Pakistan as this DLTL scheme would effectively subsidise Indian yarn and Grieg cloth instead of providing jobs and benefits to Pakistani workers.
He said the APTMA has strongly objected to the reduction in the rates of DLTL which, in the current scheme ending June 30th, is 7 percent on made ups and 6 percent on other items, which has now been reduced to a maximum of 4 percent.
The resurrection of export will reduce substantially due to reduction in DLTL rates and exclusion of yarn and Grieg cloth which is $4 billion of total exports, and the imposition of duty on cotton will hit the industry hard. He said the industry in Pakistan will be adversely affected due to non-economic and political measures of the previous government.