FAISALABAD-All Pakistan Textile Processing Mills Association (APTPMA) has demanded continuity of subsidy on energy tariff for export-oriented textile industries in addition to withdrawal of import duty on coal to save this sector from a total collapse. In a statement on Wednesday, APTPMA Chairman Muhammad Pervez Lala said that withdrawal of subsidy on gas and electricity tariff coupled with disruption of supply chain of raw materials for textile industry would tend to adversely affect national export drive.
He said that textile processing sector was already confronting with a lot of problems which had increased cost of doing business in addition to reducing productivity and rendering our products uncompetitive in the domestic and international markets.
He said the news circulating in the media that “Government of Pakistan is ready to fulfill harsh conditions of International Monetary Fund (IMF) by withdrawing subsidy on energy tariff being given to the export-oriented textile industry” had created a panic among industrialists.
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He said that textile sector was already facing multifarious problems because their units were running on low capacity due to increase in coal prices and high inflation in the rate of raw material.
If the government withdrew subsidy on energy tariff for export-oriented industrial sector, the industrialists would be constrained to close their units which would result out a flood of unemployment in the country in addition to a severe setback to the national exports, he apprehended. He said that supply chain of raw materials was badly disturbed and banks were not supporting the industrialists to access their LCs which was increasing shortage of raw materials and reducing the productivity. He said that coal price had also been increased due to hike in dollar price. “We import coal from South Africa and Indonesia but 5 percent duty has been imposed on its import”, he said and demanded that the duty should be abolished forthwith. The APTPMA chairman said that IMF’s continuous demand for enhancement in tariffs of electricity, gas, POL and heavy taxation had already jeopardized export-oriented textile sector besides rendering our products uncompetitive in the domestic and international markets.
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