June 30, 2007	Saturday	Jamadi-us-Sani 14, 1428

LAHORE, June 29: The government has, so far, failed to implement the commitment given by Prime Minister Shaukat Aziz to the textile industry to mark down the interest rate on its all outstanding loans — classified or non-classified — to 7.5 per cent and allow 6.5 per cent R&D on yarn.

An All-Pakistan Textile Association (Apta) spokesman stated in a press release issued on Friday that Mr Aziz had agreed in the meeting on June 22 to take these two measures for the survival of spinning mills.

The prime minister had assured the Apta that the government would take necessary action in two to three days, but no action had so far been taken despite the assurance,” he said.

He said the APTA had been trying its best to save the industry by presenting the actual position of the spinning industry and trying to impress upon the government that the textile industry in general and the spinning industry in particular was going through one of the worst crisis in its history and might collapse if remedial measures were not taken immediately.

He said spinning was in severe crisis and a number of mills had suspended production and many others were heading towards closure.

He said interest rates had increased 240 per cent since 2004, transferring all the profit from industrial sector to the banking industry.

“In the last one year, minimum wages have increased 53 per cent whereas inflation has increased 12-13 per cent during the same period. Transportation costs have increased three-fold since 2004. The main raw material, cotton, has not kept pace with the growing capacities, both in terms of quality and quantity whereas across the border India's crop has been increasing 20 per cent year on year basis for the last several years,” he said.

The spokesman said if no immediate action was taken by the government, the current situation would result in closures, bank defaults, and job losses.