APTMA to set up camp to highlight industry's issues

RECORDER REPORT

LAHORE: Spokesman of All Pakistan Textile Mills Association (APTMA) has said that 22-member delegation of APTMA, representing all regions led by Chairman APTMA Mohsin Aziz, along with Zonal Chairmen and Vice Chairmen, is setting up a five-day camp in Islamabad to resolve textile industry issues.

While in Islamabad, the APTMA delegation will meet President, Prime Minister, ministers for Textile Industry, Water and Power and Petroleum and Natural Resources.

The spokesman said as many as 57 textile mills prime users of electricity on independent feeders having hardly 135MW load, have been subjected to six to eight hours industry load shedding causing to one shift layoffs since last 60 days.

He said the government, in view of the severe electricity shortage, had asked APTMA to cooperate, which it did at the cost of layoff of 150,000 workers. The APTMA delegation will call on the Minister for Water & Power with a plea that the textile mills on independent feeders should be exempted from loadshedding.

APTMA spokesman said the APTMA delegation will also hold meeting with Minister for Textile Industry to represent way forward for growth and investment in textile industry under Technology Up-gradation Funds Scheme (TUFS) to mitigate the impact of high interest rates. He said APTMA had already proposed to the government for 100 percent refinance for the export-oriented textile industry across the value chain, including spinning and weaving industry. The loans of textile industry have touched to lowest ebb of 7 percent of Rs 7 trillion, which amounts to hardly Rs 500 billion mainly due to energy crisis. The textile industry in Pakistan has been waiting on the sideline of energy crisis in the absence of textile policy initiatives by the government. While the textile industry in Bangladesh and India kept on growing with availability of funds at concessional rates as against around 14 percent in Pakistan since last four years. However, he said, still the effort to control inflation through keeping high interest rate. The textile industry being export-oriented cannot export inflation, thus require a sector specific intervention for its growth, he added. He further said that APTMA has proposed that either the government should reduce interest rate to 8 percent or extend the facility of 100 percent Export Refinance to the industry ahead. APTMA spokesman has expressed the fear that both the investment and industry viability would be hit hard if there is no BMR of US $5 billion in next three years to maintain production capacity of $ 15 billion. He said last BMR took place back in 2005. The regional competitors made new investment exponentially during this period through sector specific interventions. India did the same and achieved positive results to manage rising cotton crop and unemployment.

He said the APTMA delegation would also meet Minister for Petroleum Dr Asim Hussain to discuss planning for winter season, starting from December until February next. He said the industry is being deprived of two days gas supply a week despite solidly assured by President Asif Ali Zardari. He said APTMA has offered partnership under Public Private Partnership (PPP) model for setting LNG terminal without seeking any sovereign guarantee.

On Gas Infrastructure Development Surcharge, APTMA spokesman said the delegation would stress the government to ensure expeditious implementation of Rs 24 billion surcharge for the development of gas infrastructure including LNG, IP and TAPI gas import projects.