Apparel Online India Magazine May 2nd Issue 2018 | Page 29

TEX-FILE
APTMA stresses on export-oriented strategies
to revive textile industry
All Pakistan Textile Mills
Association (APTMA) has suggested
the Government to take up an
export-oriented growth strategy
in order to support the textile
industry of the country. This was
stated by the textile body in the
budgetary proposal sent to the
federal policymakers. According
to APTMA, favourable steps have
become the need of the hour to
make textile industry in Pakistan a
vibrant one, minimising the current
account deficit and offering a
conducive environment, so that the
industry can fetch local as well as
foreign investments. Markedly, the
country reported a sharp decline in
terms of investments in a decade. It
reported total investments of Rs. 1
billion in the sector during 2005-06
which declined to Rs. 0.56 billion in
2016-17.
APTMA also suggested the
Government to make electricity
and gas accessible, rationalise
tariff for the textile value-chain and
encourage new investment so that
industry can create an exportable
surplus. The industry stakeholders
opined if power is made available
at an affordable price, it would help
the textile industry to minimise the
cost of doing business and that too
uninterruptedly. The electricity is
available to the industry currently
at a cost of Rs. 11.40/kWh which is
The industry bodies in
Pakistan had raised
issues of fund release to
refund sales tax against
the already issued
RPOs and save the
sector from a liquidity
crisis, in the past.
unrealistically high, while Rs. 7/kWh
has been demanded. The increased
cost of doing business in Pakistan
has already propelled investors to
opt out of investing in the country.
This has also forced a large number
of small and medium industrialists
to move to other manufacturing
hubs such as Bangladesh. Further,
cross-subsidy and theft in the
system are the major reasons of
concern for industry players, which
have also been highlighted by the
trade association.
In its proposal, APTMA has
urged the Government to take
measures to protect local
manufacturers of raw material
by giving them tax exemption.
Currently, the Federal Board of
Revenue (FBR) is charging taxes
on raw materials used in the
manufacturing of man-made yarn.
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