LAHORE, June 5: Some spinners are likely to launch a token two-hour shutdown protest from June 15 if the federal government fails to announce a relief package for the spinning sector in the forthcoming budget for fiscal 2007-08 as being demanded by the textile industry.

"At least 120 spinning and 27 weaving mills, 52 open-end units and 102 power-looms have already closed their operations across the country because of government’s current policies,” All-Pakistan Textile Association (APTA) leader Adil Mahmood told a press conference on Tuesday.

“The unprecedented increase in the cost of doing business is the major factor responsible for the crisis being faced by the textile industry. Some 200 spinning units will close down after the budget if nothing is done to reduce their cost of doing business,” he said.

He claimed that about one million spindles had gone out of operation in the last several months and most mills had been suffering huge cash losses.

He said the spinning industry wanted the government to extend

the facility of long-term finances to the spinning sector through LTF for all its outstanding liability, classified or not, and short-term loans at special textile finance rates. Besides, a moratorium may be given on repayment to financial institutions for two years to prevent default.

As regards bringing the raw material at par with the international rates, the import duty of 6.5 per cent on polyester staple fibre should be returned to the industry in the form of duty drawback.

He urged the government to allow free import of all types of raw cotton by land routes (via Wagha) without discrimination and extra effort on BT cotton seed development should be made.

He also called for putting in place bankruptcy laws in line with the US Chapter 11, 7 and 13 along with the removal of criminal provisions from the banking recovery laws.