S M Tanveer, Chairman, All-Pakistan Textile Mills Association has said the month-long strike to be held from August 7 has been postpones as the FM had assured that issues regarding surcharge in electricity bills, innovative taxes and the Gas Infrastructure Development Cess (GIDC) would be resolved by the end of August. A yearly burden of Rs 175 billion, on the sector will be eased with the resolution of these issues.

Tanveer added that they would hold another general body meeting in early September to decide about their strategy regarding strike, if the government fails to resolve issues. On the finance minister’s request, the association had deiced to defer the strike, Tanveer explains. He further stated that the textile industry’s views were also endorsed by the standing committee on textile, after the industry made a presentation on industry issues. Wrong policies were the cause of textile mills being shut down.

The textile industry was over-burdened by the government, when they introduced GIDC worth Rs 38 billion, electricity surcharge worth Rs 78 billion and innovative taxes worth Rs 65 billion. Tanveer believes the government should first pay circular debt by taking credit from banks and then put it on the textile industry, once its converted the interest into surcharge. He said that the industry could not afford Rs 14.5 per unit electricity tariff, which is almost, double the price being charged in China, India and Bangladesh. This burden was too much to bear for the industry and compete in the region. This was because the textile industry, which had a capacity to produce products worth $3.4 biillion was on the verge of closure.