All Pakistan Textile Mills Association (APTMA) has rung alarm bells on the economic crisis in the textile industry, saying nearly 60% of the industry is on the verge of closure.
APTMA Parton in Chief Dr Gohar Aijaz wrote a letter to the Prime Minister Shehbaz Sharif voicing their concerns regarding the issues faced by the textile industry of the country.
In the letter, the APTMA Patron in Chief said that 60% of the industry is on the verge of closure due to the extreme liquidity crunch. The country’s exports are plummeting, and the government has suspended the 72-hour Tax refunds too, he added.
He added that the demand destruction at the onset of a recession in export destinations, abandonment of the FASTER system commitment to pay refunds within 72 hours, and foreign buyers extending their payment period against shipments are causing the liquidity crunch.
The APTMA Chief added that the currency depreciation of 60% in the last year with no corresponding increase in working capital facilities and accumulation of “Deferred Sales Tax” which has not been refunded for the last 3 years is also responsible for the crisis.
APTMA has held a series of meetings with the Ministry of Finance, Ministry of Commerce, and FBR since June 2022 discussing the restoration of SRO 1125 (zero rating).
Earlier on November 14, APTMA Chairman Asif Inam urged PM Shehbaz Sharif and the chief ministers of Sindh and Balochistan to save the textile industry after gas supply was halted to industries for more than three months.
“The federal and provincial governments should take measures to save industries from complete shutdown,” the Chairman APTMA said, urging the chief executives to stop Sui Southern Gas Company from halting gas supply to industries.
Asif Inam further said that the step would further decline exports and the dollar would surge more. “Halting of gas supply will shut down industries and increase unemployment across the country,” he warned.
“Sindh and Balochistan were producing more than 80% of the gas,” he said, adding that the Sui Southern Gas Company cannot take decisions without taking stakeholders into confidence.
The chairman added that the industries were already facing issues due to low pressure and were failing to fulfil export orders.
