In a significant development, All Pakistan Textile Mills Association (APTMA) has urged the Pakistan government to completely remove the Gas Infrastructure Development Cess (GIDC) from the entire textile chain to enable it to regain its competitive edge and market share.

APTMA chairman Tariq Saud said in view of declining oil and natural gas prices in the international market there is no justification for imposition of GIDC on textile industry, which is already burdened and has become uncompetitive vis-à-vis to their regional competitors in the absence of liquidity flow and high cost of doing business.

Further Saud said that the continuous decline in exports, especially the textile exports is a matter of concern as the exports of textile sector contribute over 55 percent in earning of the total export of the country and any decrease in textile exports would indicate decrease in the foreign exchange earning of the country.

Saud mentioned that the import of synthetic yarns and fabrics of polyester, viscose and other blends is increasing by quantum leaps, during the financial year 2012-13 the import of yarn under Chapter 55 was 12,077 tons and is expected to reach 47,000 tons in the current fiscal. The import of fabric under Chapter 55 was 65.1 sq. mt. and is expected to increase to 125 million sq. mt. During the first eight months of the current financial year compared with the last full financial year (2014-15) imports have surpassed the total imports in case of yarn and fabric imports.