Daily Times

All Pakistan Textile Mills Association (APTMA) chairman Aamir Fayyaz has demanded the immediate withdrawal of a statutory regulatory order regarding imposition of customs duty on cotton imports.

In a statement issued on Tuesday, he said that the order was adversely impacting the textile industry value chain.

“The caretaker federal government has withdrawn SRO No.48 and issued SRO No. 847 effective from July 15, 2018, which imposes 3 percent customs duty on import of cotton and 2 percent additional customs duty,” the statement said, adding that the APTMA had earlier written to the caretaker federal government to explain how the earlier SRO was issued.

It said that the caretaker administration was told that the outgoing federal cabinet, to appease constituencies in southern Punjab, levied a premature customs duty on the import of cotton with effect from July 15.

The APTMA chairman was quoted as saying that the outgoing cabinet had set aside the normal procedure of taking the matter to the Economic Coordination Committee of the Cabinet before granting the approval. The Textile Ministry had already opposed the move, he said, adding that right now cotton prices were attractive for both farmers and ginners, and there was no need for any state intervention. He also regretted that the caretaker government had endorsed the anti-industry decision of the outgoing cabinet and intervened in the market to deter the competitive price factor.

He said this SRO would marginalise the positive impact on exports at present and cripple the industry’s revival efforts ahead of the next crop. The caretaker set-up should support farmers directly instead of burdening the entire value chain of the industry. The whole textile value chain would be hit hard by such a naive effort of carrying out a revenue drive, he added.

The APTMA Chairman has apprehended that there would be further closures in case such a stringent measure of Federal Board of Revenue goes unnoticed.

He said the industry would not sustain inflation, therefore, the caretaker government should withdraw the SRO immediately. He added that only the new government should decide about the fate of this matter.

He pointed out the textile industry is the mainstay of our economy. Presently the textile industry is passing through a period of unprecedented crisis. Consequently, textile exports have fallen by $1.25 billion over the last three years. One of the major reasons for this crisis is the shortage of cotton.

He said the cotton production has fallen by 22% both on account of decline in productivity and decline of the area under cultivation during the last three years. The APTMA Chairman urged the caretaker government to withdraw SRO No.847 to save the industry from a total collapse.

Published in Daily Times, July 11^th 2018.