Textile millers demand investment-friendly budget

The All Pakistan Textile Mills Association (Aptma) has urged the government to present an investment-friendly Federal Budget, 2017-18 which should aim at supporting the export-oriented industries, including textiles.

Zahid Mazhar, Senior Vice Chairman of Aptma, in the budget proposals said that the budget can prove to be a game changer for the country’s economy if it encourages exports, industry and employment.

During the first 10 months of the current financial year, textile exports have reduced to $10.296 billion, i.e., around 1% lesser than the corresponding period of the last year. The textile industry is running below capacity although it has a potential to increase exports of the country to $30 billion.

  He demanded the government to provide system gas at a regionally competitive rate of Rs 400/MMBTU across the country and remove the levy of Gas Infrastructure Development Cess. The electricity tariff for independent feeders should be Rs 7/kwh without levy of surcharges.

Mazhar also demanded the government to ensure availability of raw materials to the industry by allowing duty / tax-free imports of cotton and polyester staple fibre.

The country had already suffered huge losses due to the failure of cotton crop for the last two consecutive years. It is imperative to continue with the policy of import of cotton without duty and sales tax rather it will be suicidal to re-impose customs duty and sales tax on cotton imports.

The Aptma official also demanded proper allocation of funds against the Prime Minister’s export-led growth package announced in January this year, which envisaged payments of Rs10 billion/month, whereas only Rs 2 billion has been released so far during the last four months.

 

 
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