Voluntary closing down of the Pakistan Textile City
The voluntary winding up of the Pakistan Textile City Limited
(PTCL) has started due to non-availability of the required
infrastructure including natural gas and the paucity of funds.
This was revealed in the National Assembly Standing Committee on
Textile Industry which met under the chairmanship of Khawaja
Ghulam Rasool Koreja.
The Committee was given a briefing on the closure of the
Pakistan Textile City Project, Karachi, along with the policy to
sell out its land and Plastics Technology Centre (PTC).
The Committee expressed its reservations over the closure of
Pakistan Textile City Project, Karachi, and observed that due to
mismanagement and corruption, the debt of textile city is
exceeding to Rs 2.4 billion. The Committee directed the Ministry
to sell out 250 acres of its land for payment of its outstanding
debt and efforts should be made to make it operational by
involving Chinese/foreign companies.
The Committee was informed that the company owes a debt of Rs
2.4 billion to the National Bank of Pakistan, out of which Rs
1.3 billion were spent on the purchase of land at Port Qasim and
Rs 1 billion have so far been incurred as interest on the loan.
On the daily basis, the markup payable is Rs 700,000
approximately. These challenges could be easily handled by
selling 200 acres of land to K-Electric, for setting up a
coal-fired power plant. The land could not be sold so far as the
purpose to establish coal-fired power plant is not covered by
the objectives of the PTCL declared in its memorandum of
association. A summary was, therefore, submitted to the Prime
Minister for placing the case before the ECC for approval.
The Ministry of textile industry requested the Finance
Ministry that an amount of Rs 21.05 million may be allocated to
clear the earlier liabilities on account of salaries,
miscellaneous expenses and to cater for expenses in the current
financial year during which other options will be explored to
run the centre.