Home / Knowledge / News / Textiles / APTMA concerned over impact of NPLs on textile industry
APTMA concerned over impact of NPLs on textile industry
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

Textiles | On 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Kraig Laboratories

Textiles | On 28th Mar 2017

Kraig gets certificate for silk production in Vietnam

Kraig Biocraft Laboratories, Inc., a leading biotechnology company...

Information Technology | On 28th Mar 2017

Intex Consulting signs partnership with Kawan Era Baru

Germany based Intex Consulting GmbH has entered into a strategic...

Interviews View All

Veronique Lee

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

March 2017

March 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search