APTMA stresses on ex­port-ori­ented strate­gies to re­vive tex­tile in­dus­try

Apparel Online - - Tex-File -

All Pak­istan Tex­tile Mills As­so­ci­a­tion (APTMA) has sug­gested the Govern­ment to take up an ex­port-ori­ented growth strat­egy in or­der to sup­port the tex­tile in­dus­try of the coun­try. This was stated by the tex­tile body in the bud­getary pro­posal sent to the federal pol­i­cy­mak­ers. Ac­cord­ing to APTMA, favourable steps have be­come the need of the hour to make tex­tile in­dus­try in Pak­istan a vi­brant one, min­imis­ing the cur­rent ac­count deficit and of­fer­ing a con­ducive en­vi­ron­ment, so that the in­dus­try can fetch lo­cal as well as for­eign in­vest­ments. Markedly, the coun­try re­ported a sharp de­cline in terms of in­vest­ments in a decade. It re­ported to­tal in­vest­ments of Rs. 1 bil­lion in the sec­tor dur­ing 2005-06 which de­clined to Rs. 0.56 bil­lion in 2016-17.

APTMA also sug­gested the Govern­ment to make elec­tric­ity and gas ac­ces­si­ble, ra­tio­nalise tar­iff for the tex­tile value-chain and en­cour­age new in­vest­ment so that in­dus­try can cre­ate an ex­portable sur­plus. The in­dus­try stake­hold­ers opined if power is made avail­able at an af­ford­able price, it would help the tex­tile in­dus­try to min­imise the cost of do­ing busi­ness and that too un­in­ter­rupt­edly. The elec­tric­ity is avail­able to the in­dus­try cur­rently at a cost of Rs. 11.40/kWh which is un­re­al­is­ti­cally high, while Rs. 7/kWh has been de­manded. The in­creased cost of do­ing busi­ness in Pak­istan has al­ready pro­pelled in­vestors to opt out of in­vest­ing in the coun­try. This has also forced a large num­ber of small and medium in­dus­tri­al­ists to move to other man­u­fac­tur­ing hubs such as Bangladesh. Fur­ther, cross-sub­sidy and theft in the sys­tem are the ma­jor rea­sons of con­cern for in­dus­try play­ers, which have also been high­lighted by the trade as­so­ci­a­tion.

The in­dus­try bod­ies in Pak­istan had raised is­sues of fund re­lease to re­fund sales tax against the al­ready is­sued

RPOs and save the sec­tor from a liq­uid­ity cri­sis, in the past.

In its pro­posal, APTMA has urged the Govern­ment to take mea­sures to pro­tect lo­cal man­u­fac­tur­ers of raw ma­te­rial by giv­ing them tax ex­emp­tion. Cur­rently, the Federal Board of Rev­enue (FBR) is charg­ing taxes on raw ma­te­ri­als used in the man­u­fac­tur­ing of man-made yarn.

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