The All Pakistan Textile Mills Association (APTMA) on Monday “strongly rejected” the “fake news” regarding closure of the entire textile industry from December 30, 2022, saying the “propaganda is purely based on speculations and assumptions deduced from the letter sent to the prime minister“.
In a press release, the textile body said that “under the current circumstances, any decision to shut down the entire industry would be disastrous and irresponsible”.
Export-oriented textile sector sends out an ‘SOS’
Days ago, Patron-in-Chief, APTMA, Dr Gohar Ejaz wrote a letter to Prime Minister Shehbaz Sharif, apprising the premier that the country’s textile exports could fall below $1 billion a month from 2023 onwards, while the textile sector is operating at a capacity utilisation of less than 50% across the country due to various issues.
Ejaz said the international economic situation “primarily caused by the Ukraine crisis and the floods in Pakistan have combined to formulate the perfect storm for our economy”.
“The textile sector is now operating at a capacity utilisation of less than 50% across the country. A substantial number of jobs have already been lost and many more are to follow if remedial measures are not urgently undertaken,” it said.
‘Extreme liquidity crunch’ engulfs textile sector, says APTMA
In its letter, APTMA had attributed the decline to supply-chain disruptions, liquidity constraints, energy shortages, and the non-functioning of new projects.
APTMA also called for the restoration of SRO 1125, zero rating for the textile value chain while collecting sales tax on domestic sales at the point of purchase. It urged to immediately refund all deferred sales tax, tuff and other dues.
It also called for the implementation of Weighted Average Cost of Gas (WACoG) while extending Regionally Competitive Energy Tariffs (RCET), across the country to enable new industrial units, expansions and Punjab-based industries to compete.
After its letter, various reports suggested the entire textile industry was on the verge of closure, which would add to the problems of Pakistan already battling economic distress.
However, APTMA said this was all baseless propaganda.
“We request all stakeholders play a responsible role in steering our country out of these difficult times and avoid associating themselves with baseless propaganda,” the association urged on Monday.