LAHORE: The textile millers urged the government to address the industry’s issues relating to cotton, liquidity, competitiveness, taxes, zero-rating facility and the long-term finance facility and enable the industry to undertake investment worth $1 billion per annum.
“It is highly unfortunate that $15 b export-oriented textile industry, employing 15m workforce and consuming 15m cotton bales, is being ‘strangled to death’ in Pakistan only due to the lack of focus of government and rising burden of taxes on exports,” All Pakistan Textile Mills Association (Aptma) Punjab chairman Aamir Fayyaz said, while addressing a press conference at the Aptma Punjab office.
He said Pakistan exports have nosedived by $3 billion during the financial year 2015-16, out of which a drop in textile and clothing exports was $1 billion. He said it is worth pointing out that the textile and clothing exports of Bangladesh and Vietnam have registered an increase of $2 billion and $4 billion respectively during the same period. He further apprehended that the exports in Pakistan would continue declining unless the cost of doing business is lowered by the government.
“The cotton production had fallen by 40 percent last year, resulting in a decline of 15 percent in sowing this year,” he said and added that the textile industry was highly dependent on imported cotton now.
Therefore, duties and taxes on import of cotton would make the entire value chain uncompetitive. “This situation calls for the withdrawal of 4 percent customs duty and 5 percent sales tax on port of cotton,” he stressed.
The Aptma Punjab chief also demanded for liquidation of all the pending refunds of the textile industry to discharge liabilities and process further export orders. He said the government should also provide DLTL to all exports to mitigate the incidentals of innovative taxes and levies.
According to him, the industry cannot export the GIDC on gas and surcharges on the electricity and the prevailing odd circumstances demand their withdrawal to revive competitiveness in line with the regional competitors.
