Daily Times

LAHORE: Textile industry associations, including APTMA, PRGMEA, PHMA, Council of Power Looms Association, PTEA, APTPMA and PAKSEA met at the APTMA Punjab office on Saturday to deliberate upon the issues concerning the viability of the textile industry in Punjab.

Representatives of the associations decided unanimously to call on Chief Minister Punjab Shehbaz Sharif for securing a uniform energy price across the country. Also, the textile industry associations decided to seek the Chief Minister Punjab’s intervention for an immediate liquidation of the stuck up refunds of sales tax with the federal government.

While apprehending a closure of the Punjab-based textile industry due to the energy price disparity, they said the Punjab government should either secure a uniform energy price from the federal government or bear the price differential like the East Punjab government in India.

The textile industry leadership said the prevailing disparity in the energy price in Punjab was double that of for mills in other provinces. All the manufacturing units of spinning, weaving, dyeing, readymade garments, hosiery, towel and other sectors are becoming redundant fast with every passing day. Workers of these mills are being laid off day in and day out. Also, both the backward and forward linkages and allied sectors of the textile industry are facing the brunt of the situation across Punjab.

They pointed out that the textile industry in Punjab is paying Rs 1,300 per MMBTU for RLNG against Rs 600 per MMBTU in other provinces. Similarly, the imposition of Rs 3.60 per kWh electricity surcharge in the electricity bills is being charged unfairly which cannot be passed on to the buyers in the international marketplace and the business equation in Punjab is being heavily distorted, leading to the closure of mills in every sector of the industry.

The textile industry, as a matter of fact, has become uncompetitive both within the country as well as the region. The pending sales tax refunds and duty drawbacks are also hitting hard the viability of the industry.

Earlier, Central Chairman APTMA Aamir Fayyaz made a detailed presentation to the representatives of various associations on the existing state of affairs in the textile industry.

Published in Daily Times, February 18^th 2018.