GUJRANWALA, Oct 31: The All-Pakistan Silk Rayon Mills Association and powerlooms owners demanded on Thursday solid steps to stop smuggling of silk cloth and raw material from Tribal Areas as the cottage industry of city has reached the brink of collapse.

At a meeting presided over by association president Mian Saeed the participants said powerloom owners of Peshawar and Tribal Areas were exempt from electricity bills and others taxes and they were involved in smuggling of silk cloth and raw material as a result of which local manufacturers were suffering heavy loss.

They said powerloom owners in the Punjab have to pay taxes besides utility bills.

They said a large number of powerlooms have been shut down due to heavy taxes and high power tariff causing rise in unemployment.

The meeting demanded that smuggling of silk cloth, raw material and other items should be stopped to save the local powerloom industry. It also urged the government to withdraw excise duty on raw material to boost the industry.