KARACHI, Dec 12: The All Pakistan Textile Mills Association (Aptma) has come to a head conflict with its breakaway group, the All Pakistan Textile Association (Apta) after leaders of Aptma reportedly showed inclination of accepting .01 per cent research and development (R&D) rebate for first quarter of 2007-08 instead of 3.5 per cent announced by the government for spinners.

“Aptma is going to sign an agreement with the polyester producing and supplying units for reimbursement of R&D at the rate of .01 per cent for first quarter of (July-Sept) 2007 and onward at the rate of 3.5 per cent,” announced an Apta e-mail to Dawn.

It called the reported agreement between Aptma and polyester suppliers against the spirit of government decision as polyester companies will receive incentive at the rate of 3.5 per cent but reimburse it at 0.01 per cent.

“Apta’s interests will be hurt as it has 130 member mills on its roll, mostly polyester users while there are hardly 100 spinners who are Aptma members and mostly cotton users,” confided a leader of Apta from Lahore by telephone.

Majority of spinning mills using polyester fibre are Apta members, Apta message pointed out. Apta to protect interest of its members is taking up the issue of R&D rebate at rate of 3.5 per cent with Aptma and also with the government.

“Spinners are in distress for the last two years,” said an Apta leader. He said gas prices are up by 38 per cent, electricity charges by 10 per cent, bank interest rates are now 14 per cent while regional competitors are offering lucrative incentives to exporters which has put Pakistani business under tremendous pressures.