Industry mounts legal challenges to GIDC

Updated 13 Sep 2020

Email

Zubair Motiwalla, chairman of Council of All Pakistan Textile Association (CAPTA), said it was true that manufacturers had already started filing review petitions and the number would cross 150 by early next week.
Zubair Motiwalla, chairman of Council of All Pakistan Textile Association (CAPTA), said it was true that manufacturers had already started filing review petitions and the number would cross 150 by early next week.

KARACHI: Fertiliser and textile stakeholders have started filing review petitions in the Supreme Court against the collection of Gas Infrastructure Development Cess (GIDC).

Retired Brig Sher Shah Malik, Executive Director Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC), confirmed to Dawn on Saturday that all the members have filed review petitions in the apex court from their respective areas. He said Fatima, Fauji, Engro, Agritech etc have filed the review petitions.

Textile sector representatives gave a contrasting view regarding filing of review petitions.

Pakistan Hosiery Manu­facturers Association (PHMA) Coordinator Jawed Bilwani said around 150 manufacturers belonging to the various textile sectors from all over the country on Saturday filed review petitions. He added that some 24 hosiery and knitwear makers had filed the petitions in Islamabad while 30 manufacturers had filed in Karachi registry of the Supreme Court.

Zubair Motiwalla, chairman of Council of All Pakistan Textile Association (CAPTA), said it was true that manufacturers had already started filing review petitions and the number would cross 150 by early next week.

Fertiliser and textile sectors move courts against collection of cess

He was of the view that 500 manufacturers of textile related sectors had been affected by the GIDC. Zubair claimed that 60 per cent of medium-sized manufacturers would face real hardship as they would not be able to pay back GIDC dues.

Samir Najmul Hassan, Sindh coordinator and central executive committee member of All Pakistan CNG Association (APCNG), said that he had handed over the review draft of 500 CNG station owners to the lawyer who would submit the review petition in the SC next week.

The number of petition filers will reach 900 by Sept 17, he claimed.

The government on Friday declined to give any relaxation in recovery of GIDC and asked the fertiliser and textile industries to start paying their Rs250bn outstanding liabilities.

Total payables by FMPAC members stood at Rs132bn, excluding two new fertiliser plants of Fatima and Agritech, which claim to be dealt under a different fertiliser policy.

The textile units have a total GIDC payable of Rs116bn.

Published in Dawn, September 13th, 2020