Competitive, Viable Domestic Textile Industry Is In larger Interest Of Value Chain: APTMA
LAHORE– All Pakistan Textile Mills Association Chairman Syed Ali Ahsan has said a competitive and viable domestic textile industry is in the larger interest of the textile sector across the value chain.
Realizing the gravity of situation, he said the present government very aptly announced and implemented initiatives to ensure regionally competitive energy, both electricity and gas, to the exporting industry five zero rated sectors.
Consequently, viability as well confidence of the businessmen/industrialists and prospective investors has restored, the APTMA chairman said in a statement on Friday.
He said the industry, all across the value chain, has started preparing a policy framework, under the able guidance of Advisor to Prime Minister on Commerce Abdul Razzak Dawood and Chairman Task Force Dr Salman Shah to achieve an export target of $50 billion in five years, which will attract huge investments and create 15 million direct workforce in line with the manifesto of the present government.
Chairman APTMA dispelled the impression that export of yarn is impacting the value added industry and stated that export of yarn has declined by 24% percent in quantity terms in the month of March and the quantity per month exported is still 44 percent lower than the maximum export quantity of yarn at 60,000 per month. More than 80 percent lower count yarn (below 20) being exported are not in demand of the domestic industry.
Today, he said, the kind of yarns required by the domestic industry is available in abundance for their consumption. Any price increase in such yarns is linked with international cotton prices.
It may be noted that cotton yarn import for re-export under all exemption schemes is already allowed. More so, around 10,000 tones per month yarn is being imported by the value added industry.
He has urged upon all the subsectors to learn coexistence for the betterment of their respective sectors.
He said some mills are designed for export production and cannot be forced to sell locally amidst long unreliable credit sales and previous bad debts in the knitwear sector.
He said these mills have explored new markets, made customers and established their brands with lot of efforts of many years of hard work and consistency of quality. Such mills should not be forced to close down their operations, he added.
He has stressed the point that strengthening of all sectors is a must in the larger interest of the textile industry.
Meanwhile, Patron-in-Chief APTMA Gohar Ejaz has said that Razak Dawood Leads the way in this PTI Government of Prime Minister Imran Khan.
He said major Textile Groups of Punjab Saphire , Suraj ,Kamal , US Apparrel , Interloop ,Fazal Cloth Mills ,Mahmood Textile, Ayesha Group, Bhanero Group, Ejaz Group, Kohinoor Mills, Sadaaqat Textile Ltd and others have decided after 10 years to Invest $1 billion this year to avail the export-friendly policy of the government, especially the energy policy of 7.5 cents electricity and 6.50 dollars of gas for zero rated export sector and Long Term Finance Availability’ by the SBP.
He said these groups are all taking major initiatives in textiles expansion in downstream to consume and convert available basic textiles to home textiles, towels, socks knit apparel and clothing will enhance exports by $2 billion through value addition and create one million Jobs.— PRESS RELEASE