More textile mills threaten to shutdown

LAHORE: With 70 textile mills already closed in Punjab due to commercial non-viability, another 100 mills have submitted to All Pakistan Textile Mills Association (Aptma) in writing to close their units if the government failed to restore their competitiveness, a statement said on Monday.

APTMA Punjab Chairman Amir Fayyaz addressing a press conference said that the government's priority is not only to boost exports, but also increase the foreign exchange reserves through borrowing at a mark-up of six to eight percent.

He said the millers are not demanding any subsidy, but simply to withdraw the unjust surcharge imposed on the power tariff to deny the industry the benefit of low power cost due to decline in the furnace oil rates.

Fayyaz said that this step was taken despite the fact that the power rates in Pakistan are higher than the regional economies.

He was appalled at the speed with which the subsidy on sugar export was approved to facilitate influential. He said the government is denying tax refunds paid by the exporters during production despite the fact that exports are zero-rated.

Sugar mills would not be charged sales tax on exports and in addition will be subsidised by Rs13 per kg on exports, Fayyaz said.

The lopsided power rates are hurting Punjab industries, as industries in other three provinces produce power from natural gas that is 35 percent cheaper, he said, adding that the industry in Punjab has been deeply disappointed by the anti-industry stance of the present regime.

“It was considered a pro-business government having large following in the textile sector,” he said.

Aptma Group leader Gohar Ejaz said that it is ironical that the government has not appointed any textile minister.

The industry runs from pillar to post for redressal of its grievances, he said, adding that the Ministry of Commerce has also failed in announcing the trade policy even after six months of the announcement of the federal budget.

Aptma would call a conference of stakeholders of entire textile chain this month to evolve a joint protest strategy, he added.