The All Pakistan Textile Mills Association (APTMA) has raised the alarm about the textile industry’s economic crisis, stating that roughly 60% of the sector is in danger of going out of business.
The president of APTMA Parton, Dr. Gohar Aijaz, issued a letter to Prime Minister Shehbaz Sharif expressing their worries about the difficulties the nation’s textile sector is now facing.
According to the letter from the APTMA Patron in Chief, the significant liquidity shortage has led to the imminent closure of 60% of the business. He also said that the government had stopped issuing 72-hour tax refunds and that the nation’s exports were in free fall.
He continued, “The FASTER system obligation to reimburse refunds within 72 hours was abandoned, and overseas buyers were prolonging their payment time against shipments. These factors are what is generating the liquidity constraint.”
According to the APTMA Chief, other factors contributing to the problem include the accumulation of “Deferred Sales Tax” that has not been returned in the last three years and the currency devaluation of 60% over the previous year without a matching increase in working capital facilities.
Since June 2022, APTMA has met with the Ministries of Finance, Commerce, and FBR to consider the re-establishment of SRO 1125. (zero rating).
After the gas supply to industries was cut off for more than three months on November 14, APTMA Chairman Asif Inam pleaded with Prime Minister Shehbaz Sharif and the chief ministers of Sindh and Balochistan to save the textile industry.
“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 (SSGC) 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 (SSGC) 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 fulfill export orders.
