'Textile sector took out Rs 100 billion from banks'

Chairman All Pakistan Textile Association (Apta) Adil Mehmood has said that approximately Rs 100 billion have been taken from different banks by the textile sector, and some banks may collapse if the textile sector is not rescued on priority basis.
Addressing a press conference, here on Saturday, Adil said that over 80 owners of different spinning mills held demonstration in front of National Assembly to press the authorities to rescue the crisis stricken spinning mills.
He further stated that spinning mills had been sustaining heavy losses due to high cost of production. Due to a number of internal and external factors, 20 percent spinning mills have already closed down while the remaining units were functioning partially. Therefore, thousands of workers had rendered jobless. The position would further aggravate in coming days because of budgetary affects and doubtlessly the spinning sector of textile industry will collapse very shortly if no remedial measures are taken for revival and survival of industry by the government.
He further stated that Federal Minister for Textiles Mushtaq Cheema, Chairman of the Standing Committee on Textiles Chaudhry Nazir Ahmad Jutt and some members of the National Assembly after consulting the Prime Minister joined the protest and discussed issues of spinning mills. Later, they arranged their meeting with the Prime Minister.
Six members of Apta including Adil Mehmood Najeeb Paracha, Chaudhry Akthar, Khurrum Khaliq, Farooz Gulzar and Tanveer Sheikh met the Prime Minister. Dr Salman Shah and Hina Rabbani were also present in the meeting. The members briefed the Prime Minister about the issues of the textile spinning mills. He stated that the delegation informed the PM that if the spinning sector crisis continues, it will also affect the downstream, including the weaving sector, bed wear garments and the whole related textiles chain which will result in unemployment of hundred of thousands of workers.
The delegation further informed the PM that export targets fixed in the current budget would not be achieved because capital equities and investments in textiles sector are at high risk. There would be substantial reduction in the revenue of the government due to crisis of spinning industry.
The Prime Minister realised the seriousness of issues being faced by the spinning industry and admitted that spinning is our core industry, prime source of providing employment and of course, it is a backbone of our economy, Adil claimed.
The representatives of Apta requested the Prime Minister that if the government cannot do anything for the spinning sector, at least the government should provide honourable exit, as under the given circumstances we are unable to run the mills.
Adil Mehmood suggested that spinning millers should be given mark up @ 7.5 percent on all loans outstanding - classified and non-classified. He further said that R&D on yarn should be maintained @ 6.5 percent.
The Prime Minister has acceded to both the proposals of the Apta and assured that the problems would be resolved in next two three days. Adil Mehmood said that President General Pervez Musharraf also supported the demands of Apta members.