;
Home / Knowledge / News / Textiles / 'High cost of business hitting Pak textile industry'
'High cost of business hitting Pak textile industry'
24
Dec '15
All Pakistan Textile Mills Association (APTMA) Chairman Tariq Saud has reiterated that the high cost of doing business has started hitting textile industry severely with more textile mills closing down.

At least 110 textile mills have closed down their operations due to the high cost of doing business, particularly the cost of electricity and gas. “The current state of situation is fast becoming out of control, which is quite evident from the free fall of exports over the last three months,” he said.

Saud said the export data for November 2015 suggested that exports of cotton yarn and cotton fabric had dropped by 45 per cent and 22 per cent respectively against the corresponding period in quantitative terms, consequently an overall decline by 15 per cent in value terms during the same period.

“There is a nominal increase in clothing exports, which constitute $4 billion in total exports of industry as against $8 billion of textiles,” he added. He said the clothing sector had possessed the growth potential of above 20 per cent with the availability of GSP plus facility, but it could not happen because of the adverse circumstances.

Both the spinning and weaving sectors, backbone of the textile value chain, had faced the brunt of high cost of doing business which has made them unviable throughout the country, he said.

He lamented that the government was pressing the textile millers, particularly Punjab, to purchase LNG at $10.10/MMBTU after extending an earlier offer of $8.5/MMBTU. This will make the industry further unviable as against international competitors, he said.

Saud said the Punjab-based textile industry was under severe threat of closure because of non-availability of gas. “Some 100 mills have already been closed down and more are heading to abyss fast.”

He urged the government to immediately announce the remaining part of the textile package. That includes drawback of local taxes and levies (DLTL) scheme to the entire textile value chain and extension of export refinance to spinning and weaving sub-sectors.

“The government must introduce safeguards through tariff, non-tariff measures against the inroads of synthetic yarns and fabrics in domestic market and availability of incentives in the export market by matching the regional support package,” Saud said. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Government notifies 207 HSN Codes as technical textiles

Textiles | On 19th Jan 2019

Government notifies 207 HSN Codes as technical textiles

The government of India has notified 207 HSN Codes as technical...

Two US senators introduce Cambodian Trade Act of 2019 bill

Apparel/Garments | On 19th Jan 2019

Two US senators introduce Cambodian Trade Act of 2019 bill

Two US senators recently introduced the Cambodian Trade Act of 2019...

Rwanda to open silk factory in Kigali in Feb

Textiles | On 19th Jan 2019

Rwanda to open silk factory in Kigali in Feb

Rwanda will open a new silk factory in February at the Kigali Special ...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

The foremost issue is bridging the skill gap

Awen Delaval, Samatoa

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Nitin Soni, Dolphin Jingwei Machines

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Riddhi Jain,

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Tom Adeyoola,

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Urs Stalder, Sanitized AG

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Giulio Cesareo, Directa Plus SpA

Giulio Cesareo
Directa Plus SpA

Established in 2005, Direct Plus SpA, is one of the largest producers and...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

Leave your Comments


January 2019

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

news category


Related Categories:

Advanced Search