The All Pakistan Textile Mills Association (APTMA) is apprehending large-scale bankruptcies if energy security and affordability issues are not addressed on a war footing. Serious energy supply constraints have already led to forced closures of production capacities by 40 to 50 per cent, says APTMA. It fears the industry would be unable to procure the cotton crop already arriving in the market if the issues are not addressed immediately.
Against a target of $16 billion, Pakistan’s textile industry exports closed at $13 billion during the outgoing fiscal year. One reason is the limited energy supply, to the Punjab-based textile mills that constitute 70 per cent of the total textile industry in Pakistan.
Exports of both yarn and fabric registered 26 and 35 per cent decline in quantity terms, respectively, during the last three months. It further triggered serious supply chain issues for the value-added sector right from knitting to woven to bed linen, which consequently failed to avail of the GSP Plus facility from the EU.
APTMA has urged the government to ensure uninterrupted electricity supply to industry and expedite sales tax refunds. It also says the US should be pursued for market access facility in line with the GSP Plus facility from the EU.
www.aptma.org.pk/
