‘Half of textile industry to shutdown’

LAHORE: All Pakistan Textile Mills Association (Aptma) Chairman SM Tanveer on Wednesday warned that 50 percent of the textile industry will shut down in case the government alters the Reduced Rate Regime, fails to release refunds, and does not ensure liquidity supply from banks to the sector.
In a statement, the Aptma chairmen said industry was in trouble due to the energy crisis, high cost of finance and labour wages as against the regional competitors.
He said refund claims worth Rs100 billion of the textile industries, stuck with the Federal Board of Revenue were causing bottlenecks and colossal losses.
Tanveer further said there were rumours that the government might impose five percent sales tax on all inputs and utilities across the value chain under the Reduced Rate Regime. A rough estimation suggests this will result in an additional Rs250 billion refunds getting stuck on major inputs. This figure may even move up further in case minor inputs and utilities were added to this levy, the Aptma chairman said.
Since the banks were not releasing liquidity to the textile industry, he asked the State Bank of Pakistan to direct banks to do so.
The Aptma chairman has urged the government to let the textile industry play its due role as a major exporter, employer, and user of cotton in the country.