APTMA rejects reports over closure of textile mills across Pakistan – Markets

The All Pakistan Textile Mills Association (APTMA) on Monday “strongly rejected” the “fake news” pertaining to closure of the overall textile industry from December 30, 2022, saying the “propaganda is purely based on speculations and assumptions deduced from the letter despatched to the key minister“.

In a push release, the textile human body claimed that “under the recent conditions, any decision to shut down the full market would be disastrous and irresponsible”.

Export-oriented textile sector sends out an ‘SOS’

Days back, Patron-in-Main, APTMA, Dr Gohar Ejaz wrote a letter to Prime Minister Shehbaz Sharif, apprising the leading that the country’s textile exports could drop below $1 billion a month from 2023 onwards, when the textile sector is functioning at a potential utilisation of less than 50{5e37bb13eee9fcae577c356a6edbd948fa817adb745f8ff03ff00bd2962a045d} throughout the place due to a variety of troubles.

Ejaz stated the international economic condition “primarily triggered by the Ukraine crisis and the floods in Pakistan have combined to formulate the excellent storm for our economy”.

“The textile sector is now operating at a capacity utilisation of considerably less than 50{5e37bb13eee9fcae577c356a6edbd948fa817adb745f8ff03ff00bd2962a045d} across the country. A significant variety of jobs have presently been missing and many extra are to follow if remedial actions are not urgently carried out,” it explained.

‘Extreme liquidity crunch’ engulfs textile sector, suggests APTMA

In its letter, APTMA had attributed the decline to provide-chain disruptions, liquidity constraints, power shortages, and the non-working of new jobs.

APTMA also called for the restoration of SRO 1125, zero rating for the textile worth chain when gathering revenue tax on domestic product sales at the level of acquire. It urged to straight away refund all deferred product sales tax, tuff and other dues.

It also referred to as for the implementation of Weighted Normal Value of Fuel (WACoG) while extending Regionally Aggressive Strength Tariffs (RCET), across the region to allow new industrial models, expansions and Punjab-centered industries to compete.

Just after its letter, a variety of stories advised the complete textile market was on the verge of closure, which would add to the challenges of Pakistan by now battling financial distress.

Even so, APTMA reported this was all baseless propaganda.

“We ask for all stakeholders enjoy a responsible function in steering our nation out of these hard occasions and avoid associating on their own with baseless propaganda,” the affiliation urged on Monday.

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