APTMA: Textile sector in dire straits, needs govt help
The All Pakistan Textile Mills Association (APTMA) has reiterated its appeal to the government to save the textile industry in order to ensure the country's economic growth.
In a statement, APTMA Chairman Tariq Saud said the financials of the listed companies in the textile sector for the first 9 months of the current fiscal year suggest that the industry is heavily under pressure.
“Only 30 per cent of the listed companies of the textile industry are performing marginally better while the remaining 70 per cent of companies are showing negative results or have closed,” he said.
He said the financials of the non-listed textile companies are even worse and the exports of the sector are showing negative trends over the last two years, which the APTMA has been putting on record time and again. Unprecedented cotton crop failure caused 35 per cent drop in production this year, he said.
“The textile industry has been left unattended and no responsible figure is there in the Textile Ministry to look after its issues and problems,” he said, and added, “No one takes responsibility in the government and there is no clue as to what is in the offing for the industry in the upcoming budget.”
He said the availability of uninterrupted energy to the industry would only be useful when viability of the industry is restored. He condemned the indifferent attitude towards the prevailing state of affairs of the textile industry, which is a mainstay of the Pakistan economy and is the biggest employer and export earner in the country. He further said that if this unfriendly attitude of the government continues then the industry will reach a point of no return.
Saud pointed out that the remaining part of the textile industry package has yet to see the light of day, as most of the decisions are pending despite a firm assurance by the prime minister.
“The prime minister assured to introduce a rating regime for the industry ensuring No Tax No Refund for the entire textile value chain and to tax only the domestic consumption of the finished textile fabrics and garments.”
He also demanded that the inputs and outputs of the entire textile supply chain should be zero rated. He said there are apprehensions about increased input tax and further increases in tax after reports in media. “This will further add to the cost of doing business and make it impossible to operate.”
He warned that any increase in the input tax on the textile value chain would prove to be the last straw.