Home / Knowledge / News / Textiles / APTMA concerned over impact of NPLs on textile industry
APTMA concerned over impact of NPLs on textile industry
18
Nov '11
Mohsin Aziz Chairman All Pakistan Textile Mills Association (APTMA) while commenting on the report of the State Bank about non- performing loans (NPLs) said that the abnormal surge of more than 24 % increase in NPLs, from 494 bn to Rupees 629 bn, in just one year was alarming and disappointing.

In a statement issued on Thursday, he said the reasons for such an abnormal increase in NPLs were twofold: higher interest rates being the basic cause, and the second being the shortage of utilities supply that is basically gas to the industry. He said that because of these reasons the industry was not performing, which resulted in abnormal increase in the NPLs.

The Chairman APTMA was particularly concerned gravely over the impact of NPLs on the textile industry, which was already struggling for survival in the most unfavorable atmosphere prevailing in the country. He said, textile industry being capital and labour intensive was not performing well because of high interest rates.

The recent reduction of policy/ discount rate of just two percent was totally insufficient for investment, and viability of the projects and thus is resulting in NPL's. He said reduced gas supply to textile mills, in Punjab in particular where textile units are concentrated, had crippled this premier industry.

He lamented the fact that more than 120 days in the current year the textile mills in Punjab were either closed or running at very low capacity. Such sorry state of affairs, he emphasized, should not be allowed to continue as it would lead to a loss in the major export earnings from textiles and also would cause massive unemployment.

If the twin problems of high interest rate is not addressed and is not brought down to a single digit figure clubbed with control on power shortages to textile industry, not only the NPL's would grow at the same speed but would also result in stagnant or lower exports and also a very low growth rate of 2-2.5% which had peaked at 8.5% a few years ago which is the required rate for a developing country like ours.

He said the impact of such increase in NPLs on industry further damages the industries' image in the banking sector, as it restricts banks from extending further loans to the industry, in which BMR is essential to keep the product in line with the technologically advancing world requirement.

He therefore stressed upon the government, specially the state bank and all economic ministries to look into this state of affairs, very seriously as both, the reduction of interest rates and power shortages if not addressed urgently will have drastic irreversible consequences.

All Pakistan Textile Mills Association (APTMA)


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search