LAHORE: The textile industrialists, protesting against the government’s ‘non-serious’ behaviour, have announced to mark black day on Wednesday (tomorrow) by closing down the industry across the country.
All Pakistan Textile Mills Association (APTMA) Punjab Chairman Amir Fayyaz, addressing a press conference, said that the owners of mills in Khyber Pakhtunkhwa, Lahore, Faisalabad, Multan and Karachi had unanimously decided to close down operations and lay off millions of workers because they had nothing to offer to their international buyers against the regional competitors.
He said, “Prime Minister’s priorities are foreign tours and he is least concerned over declining export and collapse of the industry. We are told by the authorities that PM is going to the US again and exporters will have to wait for another 15-20 days for announcement of relief package by the PM.”
According to him, the cost of doing business in the textile sector has gone very high and the burden of taxes, provincial cess, system inefficiencies and the punitive withholding tax regime have added fuel to the fire.
He said that more than 50 textile mills out of 350 have been closed during the last three months, as the mills could not mange to pay high electricity bills.
He said the textile industry was vying for reducing its cost of doing business, particularly the cost of energy, which is almost 60 percent higher comparing with the regional competitors. Electricity to the textile industry in the region is not more than 9 cent per kilowatt hour against 14.5 cent per kilowatt hour in Pakistan at present, he added.
He maintained that only the continuity of textile industry operations can ensure exports and employment in the country. There is an immediate need for revival of the textile industry, as the chance of revival would be zero in case the industry is closed down once, he apprehended.
Textile industry group leader Gohar Ejaz commented the textile industry needs a congenial environment to fulfil its international commitments. It is high time for the government to announce textile exports package at the earliest, he said. He urged the government to ensure the availability of electricity and gas to the textile industry on affordable price for competing in the international marketplace.
Gohar Ejaz said the cost of doing business has escalated 15 percent due to the ‘overvalued’ Pak rupee and non-transfer of reduction of oil prices. Consequently, around 35 percent textile production capacity has become impaired throughout the country.
