LAHORE, July 3: At least 12 spinning mills have closed down during the last 10 days, raising the tally of closed mills to 140, claims the All-Pakistan Textile Association (Apta).

In a letter addressed to the president on Tuesday, the Apta claimed that 500,000 direct jobs have been lost as a result of closure of the mills.

The letter laments that the spinning industry’s appeals for measures to save it from collapse and give relief in the budget for 2007-08 have altogether been ignored by the government.

It is distressing to note that the budget will increase the cost of the spinning industry by Rs5 billion, the letter says.

With textiles constituting 65 per cent of Pakistan’s exports, the issues facing must be addressed on war footings.

Trade deficit is already at an all-time high and closure of the export-oriented spinning industry will further add to the woes of the country, it says.

It urges the president to (direct the government to) reduce the interest rates to 7.5pc on short and long term loans, classified or not, of the spinning industry, extend five per cent R&D allowance on all local and foreign sales of yarn, slash utility costs for the spinners by 25pc, and put in place some strategy on the pattern of US bankruptcy laws.