LAHORE, Jan 15: The textile manufacturers in their meeting with PM’s Advisor on Finance Shaukat Tarin in Islamabad on Friday are likely to demand immediate rescheduling of loans or moratorium on their repayment “in view of cash losses suffered by them due to domestic and global business environment.”

“The demand will be on top of our agenda,” said an office-bearer of the All-Pakistan Textile Mills Association (Aptma).

He stated that the industry was facing crisis owing to government policies and its lack of action to help manufacturers and exporters in the difficult domestic and economic conditions. “It is, therefore, government’s duty to either forgive or reschedule the outstanding debt of the industry,” the Aptma official said.

The meeting will be the first formal contact between the textile industry leaders and the new government in almost 10 months.

Persisting power and gas shortages mean the textile industry has to cut its production by up to 50 per cent over the last several months and would have to layoff thousands of employees.

The increase in credit cost and withdrawal of energy and fuel subsidies means that textile exports have been rendered uncompetitive in the global markets.

Apart from demanding debt rescheduling, the spinners, weavers and processors meeting Mr Tarin would urge him to ensure uninterrupted supply of gas and power to the export-oriented industry, reduce interest rates and secure market access in the US and Europe.

“I hope the meeting will help reduce the existing trust deficit between the government and the manufacturers,” said a spinner, who was critical of the government for ignoring the textile industry.

The industry representatives, however, were unsure of the outcome of their maiden encounter with the advisor.