MULTAN City News

Aptma asks govt to stop encouraging Indian imports
Demands Rs 9/unit power tariff
From Our Correspondent
MULTAN: The south Punjab chambers, industrialists, manufacturers and businessmen have unanimously demanded the government fix commercial electricity tariff at Rs 9 per unit instead of Rs 14 per unit and stop encouraging Indian imports.
These demands were made by Aptma executive committee member Khawaja Anis, Multan Chamber of Commerce and Industry representative Khawaja Muhammad Usman, All Pakistan Bedsheets and Upholstery Manufacturers Association chairman Syed Asim Shah, Dr Khalid Khokhar, Dera Ghazi Khan Chamber of Commerce and Industry president Mian Rehman Nasim, Khawaja Muhammad Younis, Khawaja Muhammad Fazil and others during a joint press conference held on the black day call of All Pakistan Textile Mills Association at the Multan Chamber of Commerce and Industry on Wednesday. They warned of closing textile industry for indefinite period if their demands were not met. They said Indian yarn and fabrics had been largely hitting the domestic industry but the government was not ready to impose anti-dumping duty on Indian products. They alleged that the government was promoting Indian business and imports.
Kh Anis said textile sector was unable to compete in world markets as high electricity tariff had increased the cost of production. The government cost of production on each electricity unit is Rs 9 which is sold at Rs 14 per unit to textile sector, he said adding that India was selling electricity to its industry without any profit. Terming new duty on yarn unjustified, he said it would directly damage export oriented value-added textile sector. He demanded the government provide level playing field to textile industry and let the domestic industry grow genuinely. “Textile industry would collapse if the federal government did not take preventive measures to reduce the cost of production,” he said and added that closure of the industry would increase unemployment across the country.
The Aptma executive committee member said the textile industry had become unviable due to high cost of business as well as entry of textile products from regional competitors. “The overall exports of the country have declined by 21 per cent in September 2015 against the corresponding period. There is a reduction of $443 million in one month, which suggests the alarming situation of the industry. The loss due to 21pc decline in exports is equal to the installment of IMF financial assistance,” he added. He claimed that textile mills, from Karachi to Khyber Pakhtunkhwa, remained closed following the Aptma call. He said that all textile units showed unity by observing the black day.
Speaking on the occasion, APBUMA chairman Syed Asim Shah said it was hard to compete with the low cost Indian yarn. Dera Ghazi Khan Chamber of Commerce and Industry president Mian Rehman Nasim said India was of the view that duty on Indian products was the only way to compete with India. Agriculturist and manufacturer Dr Khalid Khokhar said businessmen were moving to Bangladesh and Indonesia due to unfriendly environment in Pakistan. He demanded the government involve agriculture producers in developing cottonseeds.
MCCI former president Khawaja Muhammad Usman said the textile industry was mainstay of the Pakistan economy by providing employment to 60 per cent labourers and utilising cotton produced in the country. He said the textile industry could not sustain the system inefficiencies. “We want regionally competitive electricity and gas availability without interruption,” he added. He said the textile industry would also lodge its protest against unchecked entry of yarn, fabrics and other textile products from India. “This is a major cause of unemployment in Pakistan,” he remarked. He urged the government economic managers to take immediate steps for the restoration of textile industry.