KARACHI, Aug 7: Already burdened with high cost of production and financial crisis spinners are seeking an ‘exit strategy’ from the government to close down their units. They have suggested to the government that either basic issues be resolved or an orderly exit strategy be devised in order to ensure the safety of their assets.

The foremost condition put forward by the spinners in the exit strategy is that it should be without invoking personal guarantees of sponsors to save them from litigation and framing of civil and criminal cases against them.

The spinners have also asked the government to make the Committee for Revival of Sick Industrial Unit (CRSIU) legally effective body, which could settle all such issues in an amicable manner.

All Pakistan Textile Association (Apta) Chairman Adil Mehmood in a letter to secretary ministry of textile has strongly pleaded the case of the spinning industry which, he feels, was the victim of high cost of inputs and financial losses.

Seeking immediate relief and correction of some of the negative factors which had especially emerged after 2004, the Apta chief suggested to the government to come up with some remedy to salvage the industry.

He said that financial cost of companies had increased 300 per cent since 2004. The financial cost as a ratio of sales was 2.5 per cent in 2004 has now jumped up to 8 per cent in 2007.

Mr Mehmood lamented that gas prices for captive power generation had been increased by 53 per cent from Rs172 to Rs268 per mmbtu since 2004. As a result the feasibility of gas-based power generation projects had been totally disturbed. Recently this was brought down to Rs238 per mmbtu still resulting in a net increase of 38 per cent.