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June 27, 2019

APTMA says around 80 mills on verge of closure

Business

June 27, 2019

KARACHI: All Pakistan Textile Mills Association (APTMA) on Wednesday lamented the increase in gas tariff by 31 percent, which it said would be the last nail in the coffin of the general industry and textile industry in particular.

APTMA Sindh-Balochistan Region Chairman Zahid Mazhar said the textile sector was already facing unbearable manufacturing cost, which was very high as compared to regional competitors.

He said due to the high cost of doing business, inadequate supply of raw material, drastic increase in interest rate, and liquidity constraints due to huge delay in refunds of sales tax, almost 140 textile mills had already closed their operation.

This, he said resulted in the unemployment of a million workers. “Around 75 to 80 mills are on the verge of closure, which will add another 0.5 million to the unemployment figure in the textile industry,” he added.

Mazhar said the textile industry had not yet come out of the shock of the adverse

decision of withdrawal of zero-rating facility by the government in the Federal Budget 2019-20, and now the government was going to hit the industry with another blow in the shape of the harsh measure of increase in gas tariff.

Rejecting the increase in gas price for the industrial consumer in general and the export-oriented textile industry in particular, he said it would lead to complete closure due to the high cost of doing business compared to regional competitors. The gas tariff for industry in Bangladesh is $3.0/MMBTU, which was more than 50 percent cheaper than Pakistan, he added.

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