APTMA stresses on export-oriented strategies to revive textile industry
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.