LAHORE/FAISALABAD/KARACHI: Spinning and weaving factories across the country suspended production on Wednesday in response to a ‘token’ one-day strike call of All Pakistan Textile Mills Association (Aptma) to press for early announcement of the proposed relief package for the textile sector.

In Lahore, the textile factory-owners and workers wearing black armbands also set on fire Indian yarn and fabric outside the mills. There were reports of demonstrations by millers and textile workers from many cities.

Aptma-Punjab Chairman Aamir Fayyaz told a press conference that it was unfortunate that millers had to resort to the extreme action.

He attributed the 21 per cent drop in exports last month to increasing cost of doing business due to exorbitant power prices and uncontrolled dumping of subsidised yarn and textile products from India.

However, the Pakistan Ready­made Garments Manufacturers and Exporters Association (Prgmea) said its members had stayed away from the Aptma call.

Prgmea Chief Coordinator Ijaz Khokhar said the entire apparel sector was strongly opposed to any regulatory duty on yarn and fabric imports from anywhere in the world including India.

He, however, said some points of the proposed relief package for the textile industry covered the supply chain such as cutting the cost of doing business, speedy payments of sales tax refund, removal of Gas Infrastructure Development Cess (GIDC), zero-rated regime for textile exports and reduction in power tariff, and they must be implemented immediately.

Pakistan Knitwear Association (PKA) Chairman Shahzad Azam Khan also opposed the demand for placing a ban on cheaper import of Indian yarn. “The demand is against the principles of free trade in yarn and textiles and will raise the cost of value-added textile exports.”

“If the import of India’s yarn has to be subjected to punitive tariffs then the export of Pakistani yarn should also be restricted through imposition of regulatory duty to ensure that the country’s value-added textile makers continue to get it at internationally competitive prices,” Khan said.

In Faisalabad protesters staged a sit-in outside the office of the Pakistan Textile Exporters Association (PTEA).

PTEA Chairman Asghar Ali said in a press conference that the textile industry had lost its viability against the regional competitors.

He claimed that about 30pc industry had closed down its operations. On energy tariff, he said electricity was being provided to the textile sector at Rs12.65 per unit after fuel adjustment against the average price of Rs9 per unit in the region.

Similarly, gas price in Pakistan is $6.7 per million British thermal units (mmBtu) while it is $4.2 and $3.1 per mmBtu in India and Bangladesh, respectively.

“Imposition of GIDC has further increased the gas cost by 23pc. The government instead of encouraging the alternative energy has increased import duty on coal from 1pc to 5pc in the budget,” he added.

In Karachi Aptma spokesman Yasin Siddique told Dawn that the government has convened a meeting with the stakeholders on Saturday in Islamabad on the issue of high cost of doing business.

He said Prime Minister Nawaz Sharif and Finance Minister Ishaq Dar were expected to meet Aptma representatives to resolve the issues confronting textile and clothing industry.

“After reports of IMF’s opposition of the relief package a new situation has developed but we are hopeful that the government will find a way out,” he said.

“The government can withdraw GIDC and reduce electricity tariffs to bring down cost of doing business,” he added.

The spokesman said the black day on Wednesday was meant to mark protest, therefore, plants were not shut down completely.

Published in Dawn, October 15th, 2015

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