Discriminatory treatment and tariffs
The textile industry of Pakistan contributes around 8.5% to the GDP and accounts for around 57% of the export revenue the country generates. These figures have been falling for the past three years and there has been little effort on part of the government to support this vital sector.
In this fiscal year alone there has been 7.7% decrease in total exports from the textile sector. The All Pakistan Textile Mill Association (APTMA) has been urging the government to take necessary steps to support this industry that is facing stiff competition from neighbouring countries that are more competitive due to lower cost of production.
The textile mills of Punjab in particular have felt the brunt of the situation that pay close to 120% more gas tariff as compared to Sindh making them uncompetitive locally and abroad – mills have to substitute electricity with gas due to severe load shedding in commercial areas.
After repeated requests to address their concerns having fallen on deaf ears the APTMA has now decided to stage protests against the unfair treatment meted out to them. It is typical of this government to delay a serious matter to a point where protests become the only way to be heard.
This same government receded when traders hit the streets against taxes on banking transaction and has done the same with the huge amnesty scheme that is set to whiten almost 7 trillion rupees of black money in the real estate sector. So why then does the government refuse to listen to the textile sector that pays its taxes, employs a significant portion of the workforce and earns vital revenue for the country through exports?
The government should genuinely consider the demands put forth by the APTMA so that they are able to continue production. The government may not be able to help the mills with the exchange rate but surely they can take steps to bring down their cost of production, preferably starting with reducing the gas tariff to rational levels.
