The All Pakistan Textile Mills Association (APTMA) central chairman, Tariq Saud, has termed the government decision of imposing regulatory duty of 10 percent on yarn and fabric as prudent, justified and based on thorough facts and figures.
He said this crucial decision would save the crisis-hit basic textile industry in Pakistan where 40 percent capacity of spinning, weaving and processing mills had become impaired, closed and inoperative.
He said the latest financial results for the first quarter of 2015-16 of textile companies in spinning, weaving and composite units had witnessed around Rs 40 million loss on an average. As many as 27 basic textile mills had reported colossal losses while rest of the mills had to yet to hold annual general meetings to disclose their losses, he added.
The present state of affairs had put a big question mark on the existence of the basic textile industry in the country, he added.
He 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 were making losses and were left with no option but to close capacities, he deplored.
He said the viability of the textile industry was required to be restored immediately before the adverse impact of the situation travels down to agriculture, made-ups and closing sector. 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. He urged the government to take all such vested interest elements to the task. He further requested the government to announce the remaining major points of the textile package, which was presented to the prime minister on 11 September and the government had pledged to announce it immediately in the larger national interest of economy, exports and employment.