Feedback Here

fbook  tweeter  linkin  google
Global contents also translated in Chinese

Pakistan textile industry disappointed with the budget

"All Pakistan Textile Mills Association (APTMA) has deeply disapproved the proposed Federal Budget 2017-18. It says, the government is not serious about implementing the Rs 180 billion Prime Minister's export led growth package as till now only Rs 1 billion has been released by the State Bank of Pakistan. The government has allocated only Rs 4 billion next year, which shows lack of seriousness in increasing exports."

 

 

Pakistan textile industry disappointed with the budget

 

All Pakistan Textile Mills Association (APTMA) has deeply disapproved the proposed Federal Budget 2017-18. It says, the government is not serious about implementing the Rs 180 billion Prime Minister's export led growth package as till now only Rs 1 billion has been released by the State Bank of Pakistan. The government has allocated only Rs 4 billion next year, which shows lack of seriousness in increasing exports. Chairman APTMA, Aamir Fayyaz, said this while addressing a press conference along with senior APTMA leaders Gohar Ejaz and Ali Pervez Malik.

textile industry

 

Fayyaz said due to wrong government policies, the country’s merchandise trade deficit has reached $31 billion -- the highest in the history of Pakistan. The country’s exports, which was to the tune of $25 billion in 2013, has come down to $20 billion in 2017. The cost of doing business has increased despite considerable decrease in oil prices, in the international market the price of electricity has doubled. He said they were getting electricity at Rs 6.76 Kwh where as in 2017 electricity stands at Rs 11.30 Kwh.

He said the government has imposed duty on import of cotton in order to please cotton farmers. The government is bridging the deficit in trade gap by borrowing from local and international banks. The finance minister Ishaq Dar in his budget speech said export was on the decline due to international financial crunch, which was totally wrong.

Exports affected

Zahid Mazhar, Senior Vice Chairman, APTMA urged the government to present a federal Budget, which supports export oriented industries including textiles. The budget can be a game changer for the economy if it encourages exports, industry and employment. The government must avoid imposing additional taxes on the industry and removal of incentives would prove to be the last nail in the coffin of the ailing manufacturing and export sectors.

Zahid Mazhar, Senior Vice Chairman, APTMA urged the government to present a federal Budget, which supports export oriented industries including textiles. The budget can be a game changer for the economy if it encourages exports, industry and employment. The government must avoid imposing additional taxes on the industry and removal of incentives would prove to be the last nail in the coffin of the ailing manufacturing and export sectors.

Mazhar says, this is going to be the last opportunity to reverse the downfall of industry, exports and balance of payment. During the first 10 months of the current financial, trade deficit has already jumped to $26.555 billion from $18.951 billion of the corresponding period of the last Financial Year i.e. an increase of 40.12 per cent and if this trend will continue trade deficit for the current financial year would reach to a record level of $30 billion. Textile exports for the same period have reduced to $10.296 billion i.e. about 1 per cent lesser than the corresponding period of the last year. As against this, the textile Industry is running below capacity, although it has a potential to increase the exports of the country to $ 30 billion

Mazhar further demanded the government to ensure availability of raw materials by allowing duty/tax free import of cotton and polyester staple fibre. The country has already suffered huge losses due to failure of cotton crop for two consecutive years. It is therefore imperative to continue with the policy of import of cotton without duty and sales tax rather it will be suicidal to re-impose custom duty and sales tax on import of cotton.

Subsidies needed

He requested the government to ensure Zero Rating of all inputs in true spirit including packaging materials, spare parts and fuel and energy. Payment of all pending refunds of sales tax, which is more than Rs 200 billion resulting in creation of severe liquidity problem to the industry, duty drawbacks and incentive schemes claims should also be made without any delay. He also demanded to reduce the Turn Over Tax to 0.25 per cent from existing 1 percent. He further demanded proper allocation of funds against the Prime Minister’s export led growth package announced in the January this year, which envisaged payments of Rs 10 billion per month, whereas only Rs 2 billion has been released so far during the last four months, he added. He further demanded the government advise commercial banks to provide long term loans and working capital to the textile industry at competitive rates.

The Pakistan textile industry, contributes 60 per cent to exports, is capable to control the trade deficit, increase employment and achieve export target of 10 per cent of the GDP provided policies are made to support it instead of discouraging it.

 
LATEST TOP NEWS
 
 
MOST POPULAR NEWS