Prime Minister Nawaz Sharif is likely to discuss the textile industry issues with industry leadership after his visit to the stock exchange in Karachi on Thursday (today), said industry sources. Sources told Business Recorder that the prime minister will hold a meeting with the industry representatives to listen to their proposals for increase in exports.
The PM had also discussed in detail the reasons behind $4 billion drop in exports with the Federal Commerce Minister Khurram Dastgir Khan a day earlier. It may be noted that the textile industry is fast becoming unviable in Punjab due to multiple factors, leaving a good number of millers with no option but to close down mills for an indefinite period. The owners of sick units are seeking an exit policy from the government but of no avail. Meanwhile, the industry is demanding withdrawal of 4% customs duty, 5% sales tax on import of cotton and removal of duties and taxes on man-made fibres import. It has further sought extension of 5% of DLTL to all textile exports from yarns to garments to overcome incidentals of taxes/levies/cess and various surcharges etc.
The industry has another longstanding demand of issuance of a notification of electricity tariff determined by the NEPRA for 2015-16 without any additional surcharges/innovative taxes. Further, the industry is of the view that the electricity tariff should not be higher than Rs 8/KWh in any case.
The industry is also asking for supply of natural gas/RLNG to textile mills in Punjab at regionally competitive rates and the gas tariff should not exceed $6/MMBTU. Removal of all ambiguities relating to SRO 491(i) 2016, tariff & non-tariff measures to curtail imports of synthetic yarns and fabrics and incorporation of indirect exports to the LTFF scheme are a few more demands of the industry.