LAHORE: Criticising the federal government for its non-serious attitude to resolve their issues, the textile sector’s associations have finally sought Chief Minister Punjab Shahbaz Sharif’s intervention to reduce energy cost and clear refunds/rebates of the industry with immediate effect.

“We have made extreme efforts to apprise the government on our issues, but to no avail. Therefore, we have urged the chief minister Punjab to hold an urgent meeting with us and solve our two major problems — reduction in the energy tariff and clearance of ours refunds/rebates worth billions — within a short span of time by taking up these with the federal government,” Aptma Chairman Aamir Fayyaz told reporters at a press conference.

“Since we do not plan to take to the streets with our workers, the government must not push us towards that,” he warned.

Flanked by the representatives of Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Readymade Garments Manufacturers Association (PRGMA), Pakistan Textile Exports Association (PTEA), All Pakistan Textile Processing Manufacturers Association (APTPMA) and Power Looms Association, the Aptma chairman said that Pakistan’s textile and its related industry is not competitive anymore due to reduction in the working capital, massive decline in exports and increased cost of doing business.

“In FY17, our exports squeezed to $20bn after falling from $25bn. Due to a decline in exports, there is a gap of $15bn to bridge the trade deficit that is likely to touch $22bn during FY18. But the government continues to borrow money to bridge this gap that is an unsustainable way to deal with such a situation,” he explained.

The Aptma chief urged the government to focus on the export-led growth rather than adopting temporary methods to handle the situation.

He demanded the government to reduce the energy tariff from Rs11 per kilowatt to Rs6, by withdrawing Rs3.5 per kW surcharge that has been imposed on the industry to cover up line losses, power theft etc.

Similarly, the government should also offer the same gas tariff for Punjab’s textile industry, as being given to Sindh and other provinces.

“Likewise, the government must clear our refunds/rebates, which is actually our right and will be used to keep our working capital in a balanced position,” he added.

Published in Dawn, February 18th, 2018