APTMA fears complete closure of mills before end-December

All Pakistan Textile Mills Association (APTMA) Punjab Chairman Aamir Fayyaz has hinted at closing down textile mills throughout the province before end of this month. "The members are ready to close down mills in Punjab while 2/3rd majority has supported indefinite closure of mills against the delay in announcement of bailout package by the government," he said.
He was addressing a press conference on Monday after holding a general body meeting of the association at APTMA Punjab office. Former chairmen APTMA Gohar Ejaz, SM Tanveer and Ahsan Bashir were also present on the occasion. He revealed that all textile associations from Punjab have contact the APTMA leadership for collective action against the government's apathy towards the industry problems. "The situation is heading fast towards a total collapse of the textile industry," he warned.
He expressed the hope that the consultation process would be concluded during this week and a final decision to this effect is expected next week. He said the APTMA is a combination of all sectors of the value added textile industry while leading value added sectors associations have shown common concerns towards the prevailing situation. He said that government has imposed anti-dumping duty on cotton yarn while leaving the import of MMF yarns unattended, as the relevant notification does not cover them.
Similarly, he added, the government has allowed long-term financing facility (LTFF), which would have no immediate impact because of the hostile environment for new investments. Finally, there is only one percent reduction in the export refinance facility, which has not even been extended to spinning and weaving. He said that SNGPL has shutdown gas supply to the Punjab-based textile mills altogether, increasing the number of closed down mills to 70.
He also discussed in detail the prevailing adverse circumstances, including 40 percent drop in cotton arrival in Punjab, unaffordable electricity tariff and burdening of industry with domestic taxes, and urged the government to do away with them without any further delay. While speaking on the occasion, former chairmen APTMA Gohar Ejaz urged the government to restore gas supply immediately besides tariff rationalisation of electricity. He said 40 percent reduction in cotton arrivals in Punjab would incur US 1.5 billion dollars loss to the farmers and US 4 billion dollars loss to exports.