All Pakistan Textile Mills Association (APTMA) Punjab Chairman Aamir Fayyaz indicated at a press conference held after its AGM that several textile mills in the region may completely stop functioning before end of this month. The move may be taken due to the delay in announcement of bailout package by the government.
He said that all textile associations from Punjab have contacted the APTMA leadership for collective action against the government's apathy towards the industry problems. "The situation is heading fast towards a total collapse of the textile industry," he warned.
He said that government has imposed anti-dumping duty on cotton yarn while leaving the import of MMF yarns unattended, as the relevant notification does not cover them. The government has allowed long-term financing facility (LTFF), which would have no immediate impact because of the hostile environment for new investments. Finally, there is only one per cent reduction in the export refinance facility, which has not even been extended to spinning and weaving. He said that SNGPL has shutdown gas supply to the Punjab-based textile mills altogether, increasing the number of closed down mills to 70.
He also discussed in detail the prevailing adverse circumstances, including 40 per cent drop in cotton arrival in Punjab, unaffordable electricity tariff and burdening of industry with domestic taxes, and urged the government to do away with them without any further delay. While speaking on the occasion, former chairmen APTMA Gohar Ejaz urged the government to restore gas supply immediately besides tariff rationalisation of electricity to improve country’s exports.
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