July 24, 2007	Tuesday	Rajab 08, 1428

LAHORE, July 23: The All Pakistan Textile Association (APTA) has decided to close down mills from Aug 5 and hold protest rally outside the Presidency in Islamabad if the demands of the spinners are not accepted.

The decision was taken by APTA at its meeting held here on Monday and was attended by 60 millers. APTA spokesman Tanveer Shaikh told newsmen that the meeting rejected a proposal to shut down mills forthwith and decided to first request the president to intervene and get their problems resolved. The mills would be closed down as a last resort.The meeting also decided that the APTA would take up the issue of loans and advances with the banks concerned. “Working capital limits are life blood of every business enterprises. Spinning mills are in losses and banks are reluctant in renewing working limits despite the fact that the mills have been paying substantial amount as mark-up to banks every year,” Mr Shaikh said.

“If this attitude is not changed then the mills will not be able to secure raw material and matter will be further aggravated. Therefore, we urge the government to direct the banks to allow working capital limits to spinning mills,” he added.

The spokesman said the spinning mills had been facing heavy losses due to high cost of production owing to 38pc increase in gas price, 10pc rise in electricity tariff, 84pc surge in minimum wages, increase in transportation and storage costs, packing materials, etc., and 239pc enhancement of the cost of finance.

The APTA members were of the opinion that the government should purchase all lint cotton in the season through Trading Corporation of Pakistan at fixed price and sell it to the spinning mills throughout the year. “In this way the availability of lint cotton to the mills at a certain price will be assured,” he said.

The meeting said the textile minister and ministry of commerce had ignored the spinning mills and had done nothing in the recently announced trade policy for the spinning sector.