Punjab-Based Textile Mills: APTMA Chairman Hails Provision Of RLNG

Punjab-Based Textile Mills: APTMA Chairman Hails Provision Of RLNG

Chairman All Pakistan Textile Mills Association, Tariq Saud thanked the Prime Minister Mian Muhammad Nawaz Sharif, Federal Minister for Finance Muhammad Ishaq Dar, Federal Minister for Petroleum & Natural Resources Shahid Khaqan Abbasi and Special Assistant to the Prime Minister on Revenue Haroon Akhtar Khan for providing round the clock energy in the form of Re-gasified Liquid Natural Gas (RLNG) for consumption of the Punjab-based textile mills which would help in overcoming the shortage of energy faced by the textile industry, particularly in the Punjab and open up the opportunities of bringing investment in the country and energize the closed / idle capacity of the textile industry.
In a statement issued to the press, Chairman APTMA said that the textile industry is facing a crisis like situation because of the high cost of doing business and liquidity constraints. Imposition of GIDC has served to cripple the industry which is already burdened and has become uncompetitive vis-à-vis to their regional competitors in the absence of liquidity flow. He said in view of declining oil prices and natural gas prices in the international market there is no justification for imposition of GIDC. He urged upon the government to remove GIDC from entire textile chain and enable it to regain its competitive edge and market share.
To revive the ailing textile industry Chairman APTMA demanded further reduction of Long Term Financing Facility by at least 1 percent ie from 5 percent to 4 percent maximum including bank spread, reduction in Export Refinance Facility by another 0.5% ie 3.5% to 3% and to provide this facility to complete textile chain ie from spinning to garmenting. He urged the Government remove the Cap of financing of Rs 1.5 Billion on Long Term Financing Facility.
He further demanded for Zero Rating of all taxes on exports and providing Rebate in the form of DLTL @ 5% against export of Yarns, Fabrics, Made-ups and Garments.
Chairman APTMA further said that the import of Man Made Fibre, Yarns and Fabrics of Polyester, Viscose and other blends is increasing by quantum leaps, during the financial year 2012-13 the import of yarn under Chapter 55 was 47,736 Tons whereas in F.Y 2014-15 it went up to 72,337 Tons. The import of Fabric under chapter 55 was 180,169 Sq. Meters and jumped up to 561,963 Sq. Meters. During the first seven months of the current financial year compared with the last full financial year (2014-15) the imports have neared the total imports in case of yarn and surpassed in fabric imports. He demanded the government to impose 15% Regulatory Duty on the import of yarn and fabric falling under Chapter 55 of the Custom Tariff and the duty on import of Man Made Fibres like Polyester, Viscose, Acrylic, and Nylon should be reduced to zero percent, so that the domestic yarn producers can compete with Indian, Indonesian, Chinese producers who have their own manufacturing capacities to produce these raw materials and their variants.
He further said that, we are thankful to the Prime Minister for accepting APTMA’s demand for providing zero-rating sales tax facility to textile sector. He urged the Prime Minister to initiate this facility from April 1, 2016 instead of waiting for the start of next financial year since the entire textile chain is facing severe liquidity crunch and the textile industry exports have registered a decline of over 10 percent in January 2016 month on month basis and more than 30 percent capacity of the industry has been closed down because of the liquidity crunch and energy constraints.
He demanded the Prime Minister Mian Muhammad Nawaz Sharif and the Economic Managers of Pakistan to come forward and support the viewpoints of the industry for taking bold decisions as requested above to regain the phase of bringing back viability in the textile industry and economic prosperity of the country