APTMA shares textile industry problems with Minister

01 Jul '14

2 min read

The All Pakistan Textile Mills Association (APTMA) has shared the problems facing the textile industry with Minister of Textile Industry Abbas Khan Afridi, according to a Dawn report.

In a letter to the Minister, APTMA chairman Mohammad Yasin Siddik drew attention to the man-made fibre sector, and said that Pakistan has no plants that manufacture specialised man-made fibres such as acrylic, viscose, bamboo, lycra and slub. Despite this, five percent duty is imposed on imports of this fibre.

Mr. Siddik said the usage of man-made fibre in Pakistan’s textile industry is less than 20 percent, while its usage is around 60 percent in other textile producing countries.

About raw cotton, Mr. Siddik said, one percent customs duty and five percent sales tax has been imposed on raw cotton import in the Budget 2014-15. This step would result in an increase in the cost of final product as the Pakistani spinning industry imports around 25 percent of its total cotton demand, which includes long staple and contamination free cotton for production of high value yarn and high-end value added products.

The letter also drew the Minister’s attention to textile raw material fabric waste (HS Code 6310.9000). Mr. Siddik said fabric waste is a direct raw material used by spinning mills and is not a finished product. Still, it is charged 17 percent sales tax and the yarn produced from the textile waste is also charged at two percent rate, which increases the cost of final product, making the Pakistani textile industry less competitive.

Pakistan’s textile and garment exports increased by 5.96 percent year-on-year to US$ 12.626 billion in the first eleven months of fiscal year 2013-14, according to the latest data released by the Pakistan Bureau of Statistics.

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