Lahore - The first nine months financials of the listed companies of the textile sector suggest that the industry is heavily under pressure, as only 30 percent of the listed companies of textile industry marginally performing while remaining 70 percent companies showing closure or negative results.

Financials of the non-listed textile companies are even worst and the exports of the sector are showing negative trends over the last two years. Unprecedented cotton crop failure caused 35% drop in production this year.

The textile industry has been left unattended and no responsible figure is there in the textile ministry to look after its issues and problems.

No one takes responsibility in the government and there is no clue as to what is in the offing for the industry in the upcoming budget.

These views were expressed by All Pakistan Textile Mills Association Chairman Tariq Saud. He urged the government to wake up from a slumbering mode and save the textile industry in order to save economic growth of the country.

He said the availability of 24/7 energy to the industry would only be useful when viability of the industry is restored. He condemned the indifferent attitude towards prevailing state of affairs of the textile industry, which is a mainstay of Pakistan economy with backward and forward linkages, biggest employer and the highest export earner in the country. He further said that if this unfriendly attitude of the government will be continued then the industry will move towards the position of no return.

He pointed out that the remaining part of the textile industry package has yet to see daylight, as most of the decisions are lying unrested despite firm assurance by the Prime Minister.

Prime Minister assured to introduce rating regime for industry ensuring No Tax No Refund for the entire textile value chain and only the consumption of finished textile fabrics and garments for domestic consumption be taxed.

Similarly, he added, the inputs and outputs of the entire textile supply chain should be zero rated. Apprehending increased input tax and further tax, as being reported in the press. This will add to further cost of doing business and impossible to operate.

He warned that any increase in the input tax on the textile value chain would prove last straw on the industry’s back. Industry will out rightly reject any such move, if introduced in the budget.

While listing down already pending issues of the industry, Chairman APTMA said the government has not yet released pending refunds of Sales Tax. 5 percent DLTL against exports of the entire textile chain including yarn. The theft surcharge and GIDC levied on the textile industry not yet withdrawn.

He said the input cost of cotton farmers be reduced to encourage cotton production. Also, the funding provided by the textile industry for cotton research should be spent prudently on cotton seed technology.

He said the whole textile value chain should be zero rated in the budget as over 80 percent of all fibres consumed is exported in one form or the other.    

He also demanded immediate withdrawal of sales and import duty on cotton import.

He said the import of synthetic speciality fibers including viscos and acrylic should be zero rated to undertake product and market diversification.

He expressed his wonder on a dilly-dallying approach of the government towards not imposing 15% regulatory duty on the subsidised and dumped import of Indian synthetic yarns and fabrics entering into Pakistan’s market for domestic consumption.

He said the cotton stranded at the Wagha border should be immediately released to operationalize the industry, which is closed due to shortage of cotton.  

He said the government should patronise the industry by resolving important pending issues of industry. Already, Pakistan’s industry is miserably lagging behind it’s immediate competitors like Bangladesh, Vietnam and India.

He has appealed the government to save the flagship industry of Pakistan for the sake of national economy by taking concrete steps in the upcoming budget.