The All Pakistan Textile Mills Association (APTMA) Punjab Chairman Aamir Fayyaz has condemned the government's indifferent attitude towards the Punjab-based textile industry, which has resulted into alarming decline in exports during November 2015 comparing with the corresponding period He said the export data for November 2015 reveals that exports of cotton yarn and cotton fabric have dropped by 45 percent and 22 percent respectively against the corresponding period in quantitative terms consequently an overall decline by 15 percent in value terms.
There is a nominal increase in clothing exports during the same period, he said and added that the textile exports constitute $8 billion of total exports against $4 billion of clothing exports. He said the government's apathy towards the textile industry has resulted into closure of 100 mills out of 270 mills across the Punjab. Textile Mills in Punjab are facing a serious blow of non-viability due to the high cost of doing business. "The remaining capacity has also closed partially," he added.
The energy cost had hit through the roof in August 2013 when the government had increased power tariff to Rs 15 per unit due to a surge in oil prices to $100 per barrel. "However, the industrial unit is yet Rs 14 per unit despite the fact that oil price has dropped to $35 per barrel in the international market today," he deplored. "Meanwhile, the cotton crop in Punjab has also fallen short by four million bales during current season and the situation is fast heading towards total collapse of institutions, especially due to the indifferent attitude of the government," he added. He further pointed out that some 10 million direct and indirect jobs relating the Punjab-based textile industry is under threat, as the strength of textile industry is fizzling out in thin air very fast.
He warned that revival of the Punjab-based textile industry would be next to impossible in case the government delayed the solution to the problem of high energy cost. He expressed deep remorse that the textile industry has been left unattended by the government, as no one is ready to kill the disparity in energy cost of Punjab-based textile mills against other provinces as well as the regional competitors. "It is also pathetic to note that the cost if LNG was $5 world over but the federal government was not offering a compatible rate to Punjab-based mills against those in Sindh and KPK," he added.
He apprehended that the Punjab-based textile industry would be unable to compete in domestic and international market by next month in case the declining trend continues with present pace. "We have already lost the advantages of GSP plus facility due to the prevailing situation," he warned. Chairman APTMA Punjab has urged the economic managers of the country to pass on the benefit of falling oil prices to the industry without delay. He has expressed the hope that the government would realise the intensity of the situation and announce the textile industry bail out package forthwith.
Comments
Comments are closed.