LAHORE, Nov 27: The All-Pakistan Textile Association (Apta) has urged the caretaker government to allow import of all types of cotton from all land routes, including Wagha, from India and remove 6.5pc duty on imported polyester staple fibre (PSF) in order to help spinning industry reduce its costs.

In a letter addressed to the caretaker prime minister, Mohammadmian Soomro, on Tuesday, Apta chairman Adil Mahood urged him to also bring down interest rates for spinning sector to 7.5cp for all outstanding, short and long-term loans, with a repayment period of seven years.

“In case these measures cannot be taken, the government should give an honourable exit strategy for companies without dragging them into civil and criminal cases,” the Apta leader said.

“We do not want handouts as is the general impression being created. We simply want the same cost structure when we made our investment decisions expecting consistency of policies as committed by the government.

“You will agree that 400pc rise in mark-up rates in three years, 61pc increase in minimum wages in one year and 46pc rise in gas prices in two years does not represent consistent policies,” he said.

He said that the country’s textile business has been in a crisis for over two years, but we could not convince the previous government that the crisis would make revival of the industry impossible.

The textile exports have always played a vital role in the economy and today the sector accounts for more than 64pc of the total exports, and 40pc of total industrial employment.

“For the last two years textile manufacturing, especially the spinning sector, has been in deep crisis due to disproportionate increases in our cost of production. On the other hand, our regional competitors – China, India and Bangladesh have given massive subsidies to their industries, like lower mark-up rates, rebates, export refinance.

Therefore, Pakistan also needs to take certain steps to reduce the industry’s costs and enable to compete in the international markets.”