LAHORE: A spokesman of the All Pakistan Textile Mills Association on Sunday criticised the Ministry of Water and Power for ignoring ground realities and destroying the textile industry - the largest employer of 10 million workers in Pakistan.

“The ministry is following the policy of recovering theft and line losses from efficient consumers,” he added.

“The ministry should also avoid sarcastic remarks over the demand for zero-rating regime for the textile industry, as it is a universal truth that the export-oriented industry enjoys zero-rating status everywhere in the world,” he said and added the ministry should understand the export mechanism and be friendly to it in the larger national interest.

The Aptma spokesman said regional tariff for the industry was seven cents or Rs7 per unit while in Pakistan the water ministry had increased it from nine cents to 14 cents or Rs14 per unit by enforcing Tariff Rationalisation Surcharge and levies of Rs3.74, which was actually the ‘theft recovery surcharge’ from honestly paying consumers and the industry.

He said the textile industry had started cautioning the government that it would be unable to sell its products to international buyers if the government continued imposing the tariff rationalisation surcharge.

The export data for July 2015 had vindicated the industry’s concern, as the exports had declined by 20 per cent month-on-month basis, which means two million textile workers would be jobless sooner than later, the spokesman added.

He said the industry was still crying that the electricity tariff was higher against the regional competitors.

The spokesman appealed to the water ministry to avoid giving an impression of ‘government versus industry’.

“Instead, Aptma is highlighting its problems because it believes that this government is for the industry,” he added.

The spokesman said the Aptma had been agitating for a special electricity tariff for the export-oriented textile industry operating on the independent feeders with zero line losses. “Only a regionally competitive electricity tariff can save the textile industry,” he said.

He pointed out that besides ‘unjustified’ burdening of the industry with various surcharges in electricity bills, the member mills were also perturbed over the enforcement of the Gas Infrastructure Development Cess and imposition of punitive taxation on the textile sector, resulting in high cost of doing business.

The Aptma spokesman urged the water ministry not to spoil negotiations between the textile industry and the finance ministry by issuing ‘irresponsible’ statements.

“The ministry should keep in mind that Aptma has deferred its Aug 7 strike for a month on the request of Finance Minister Ishaq Dar,” he added.

Published in Dawn, August 17th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Back in parliament
Updated 27 Jul, 2024

Back in parliament

It is ECP's responsibility to set right all the wrongs it committed in the Feb 8 general elections.
Brutal crime
27 Jul, 2024

Brutal crime

No effort has been made to even sensitise police to the gravity of crime involving sexual assaults, let alone train them to properly probe such cases.
Upholding rights
27 Jul, 2024

Upholding rights

Sanctity of rights bodies, such as the HRCP, should be inviolable in a civilised environment.
Judicial constraints
Updated 26 Jul, 2024

Judicial constraints

The fact that it is being prescribed by the legislature will be questioned, given the political context.
Macabre spectacle
26 Jul, 2024

Macabre spectacle

Israel knows that regardless of the party that wins the presidency, America’s ‘ironclad’ support for its genocidal endeavours will continue.