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APTMA to observe 'Black Day of Unviability of Textile Industry’

All Pakistan Textile Mills Association (APTMA) has announced a "Black Day of Unviability of Textile Industry of Pakistan" from Karachi to Peshawar on Wednesday, October 14, 2015. Addressing a press conference, Tariq Saud, Central Chairman APTMA, said that Pakistan's textile industry was facing worst-ever crisis of its history and thus unable to compete in the world market.

Pakistan's textile export share in global market has decreased from 2.2 per cent to 1.8 per cent from 2006-2013, whereas exports share of regional competitors enhanced by 75 per cent, from 1.9 per cent to 3.3 per cent for Bangladesh; 35 per cent, from 27 per cent to 37 per cent for China and 35 percent, from 3.4 per cent to 4.7 per cent for India respectively. “If the situation persisted and the government would not take preventive measures to protect the domestic textile industry, Pakistan would be out of the list of exporting country of textile items,” he said.

Raising issues faced by the industry, he said that government has increased gas prices for the captive and general industry in addition to levy of GIDC @ Rs 200 for Captive Power Plants. "Due to the levy of GIDC and increase in gas tariff by 23 per cent, the cost of gas for industry has been increased to $6.7/MMBTU for Industry and $7.7/MMBTU For captive power plant as compared to India $4.2, Bangladesh $3.1, Vietnam $4.2/MMBTU." In addition, electricity tariff in the regional competing countries is between 6 to 9 cents whereas it is Rs 15 per unit or 14.5 cents per unit in Pakistan. He said that unplanned import from India is directly hurting the domestic industry as custom duty on import of cotton yarn in Pakistan is 5 per cent whereas India has imposed 28 per cent duty on yarn import making export of yarn to India from Pakistan unviable.

Pakistan's textile industry could never compete with the Indian industry because of the high cost of doing business which has led to the closure of number of mills resulting in the rate of unemployment is increasing day by day. He said that the government should review trade with India and impose a minimum 25 per cent regulatory duty on import of yarn from India.

www.aptma.org.pk

 
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