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Govt urged to ensure congenial environment for textile industry
Nov '10
Acting Chairman All Pakistan Textile Mills Association (APTMA) Shahzad Ali Khan has urged the government to ensure congenial growth environment for textile industry to meet the opportunities of fresh investment and increase in exports to create more jobs in the country.

He said the fears of withdrawal of zero-rate regime under the proposed Reformed General Sales Tax (RGST) coupled with energy shortage were hampering smooth sailing of textile industry. These fears are impeding growth in a situation when textile industry is in the process of cotton lifting, he added.

The Acting Chairman APTMA said withdrawal of zero-rate regime would push the industry back to the era of flying invoices and refunds stuck up. He said the government policymakers would be doing no service to the textile industry by withdrawing zero-rate regime, as it has already experienced the same with zero result. He said the APTMA was fully supportive to the idea of documentation of economy to lessen the tax burden on corporate sector. But withdrawal of zero-rate regime was not acceptable to textile industry, as 80 percent of its production is exported in one or the other form.

Shahzad Ali Khan said short of gas supply to textile industry Captive Power Plants (CPPs) is adding fuel to the fire, as industry is busy in firefighting with the situation while putting its investment plans on the backburner. He said uninterrupted supply of gas to textile industry would not only enable the country to meet export target of $25 billion by 2015 but it would also generate jobs in the country.

Acting Chairman APTMA said continuity of zero-rate regime and availability of gas to textile industry was a challenge for the government and it demands a prudent policymaking in the days to come to encourage new investment in the sector.

All Pakistan Textile Mills Association (APTMA)

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