APTMA terms regulatory duty as justified
LAHORE – All Pakistan Textile Mills Association (APTMA) Central Chairman Tariq Saud on Saturday termed the government decision of imposing regulatory duty of 10 percent on yarn and fabric as justified and based on thorough facts and figures.
Talking to media, APTMA chairman said that this vital decision would save the crisis-hit basic textile industry in Pakistan where 40 percent capacity of spinning, weaving and processing mills has become impaired, closed and inoperative. He said that the latest financial results for the first quarter of 2015-16 of textile companies in spinning, weaving and composite units have witnessed around Rs 40 million losses on an average. As many as 27 basic textile mills have reported losses while rest of the mills have yet to hold annual general meetings to disclose their losses, he said.
Association chairman clarified that the latest price increase of textile products was due to an increase in the cotton index at the New York Stock Exchange. But still the textile mills are making losses and left with no option but to close their capacities. The viability of the textile industry is required to be restored immediately before the adverse impact of the situation trickles down to agriculture made-ups and closing sector, he added.
It is pertinent to mention that 70 percent of the textile industry associations are highly concerned over the prevailing situation and only a few individuals with commercial interests are repeatedly denouncing the government decision.
Tariq Saud urged the government to take all such vested interest elements to the task besides announcing the remaining major points of the textile package, since the government had pledged to announce it immediately in the larger interest of national economy, exports and employment.