26 Jun, 2007 - Pakistan
All Pakistan Textile Association (APTA) Chairman Adil Mahmood has said that the spinners think that the textile spinning industry could only be saved if the government takes immediate remedial measures in this regard.
Addressing a press conference here after meeting with Prime Minister Shaukat Aziz, the APTA chairman said that they demanded 5 percent RandD facility for textile spinning sector as given to all other textile sectors. He said that the RandD was demented to be allowed on all sales, local and export as eventually most of our yarn is exported directly or after conversion. He said that loans of long term and short term may be converted to 7.5 percent mark up rates, repayable over 7 years, to cover leasing and banks lending as has been done for other textile sectors except spinning under the LTF scheme. He said that even the mills, which had not been able to keep up with their payments, should be allowed to avail of this facility.
The 25 per cent reduction in utility prices for textile spinning mills as has been done for the agricultural sector. Moratorium of 2 years for repayments of loans for them to settle down. A respectable bankruptcy / exit policy for those mills that cannot survive or have given up, he said pointed out of the demands.
He said that the National Assembly members noticed the demonstration and brought this to the attention of the speaker, 5 MNAs including Nazir Ahmed Jatt, Haroon Piracha, Naqai and Mushtaq Cheema, Federal Minister for Textiles came out to meet the protesting mill owners. He said that six representatives of APTA including Tanveer Shaikh, Chaudhry Akhtar, Khurram Khan, Feroze Gulzar and Nazir Piracha were asked to come into the NA and they met Cheema and then the Prime Minister and appraised them of their grievances.
Adil said that the ministers were advised that the spinning industry is closing and many more will close down if nothing is done and done soon.
The ministers were told that it was a real fear that close to 2 million people directly and indirectly employed by this sector would be rendered jobless very soon. He said that the ministers were advised that if spinning closes then the value added industry would also not be able to absorb the additional costs of importing yarn and producing its products eventually leading to their closure also. Cotton would be exported and yarn and fabric would be imported which was clearly not desirable given the already high levels of trade deficits.
He said that the PM also agreed to look into the balance demands. The PM committed to resolve the issues within the next two to three days. The millers felt relieved to realize that the PM was aware of the severity of the malaise in which the textile spinning industry when the spinners pointed out that their industrial revival has moved from Aspirin stage to Antibiotic stage but the PM went one step further by stating that the textile spinning sector did not need antibiotic but major surgery.
The spinners insisted that they did not want handouts but to be put back into the same costs structure as they were in during 2004. They reiterated the Governments repeated commitments of consistent policies and level playing field, Adil added.
Source: The Nation (Pakistan)Addressing a press conference here after meeting with Prime Minister Shaukat Aziz, the APTA chairman said that they demanded 5 percent RandD facility for textile spinning sector as given to all other textile sectors. He said that the RandD was demented to be allowed on all sales, local and export as eventually most of our yarn is exported directly or after conversion. He said that loans of long term and short term may be converted to 7.5 percent mark up rates, repayable over 7 years, to cover leasing and banks lending as has been done for other textile sectors except spinning under the LTF scheme. He said that even the mills, which had not been able to keep up with their payments, should be allowed to avail of this facility.
The 25 per cent reduction in utility prices for textile spinning mills as has been done for the agricultural sector. Moratorium of 2 years for repayments of loans for them to settle down. A respectable bankruptcy / exit policy for those mills that cannot survive or have given up, he said pointed out of the demands.
He said that the National Assembly members noticed the demonstration and brought this to the attention of the speaker, 5 MNAs including Nazir Ahmed Jatt, Haroon Piracha, Naqai and Mushtaq Cheema, Federal Minister for Textiles came out to meet the protesting mill owners. He said that six representatives of APTA including Tanveer Shaikh, Chaudhry Akhtar, Khurram Khan, Feroze Gulzar and Nazir Piracha were asked to come into the NA and they met Cheema and then the Prime Minister and appraised them of their grievances.
Adil said that the ministers were advised that the spinning industry is closing and many more will close down if nothing is done and done soon.
The ministers were told that it was a real fear that close to 2 million people directly and indirectly employed by this sector would be rendered jobless very soon. He said that the ministers were advised that if spinning closes then the value added industry would also not be able to absorb the additional costs of importing yarn and producing its products eventually leading to their closure also. Cotton would be exported and yarn and fabric would be imported which was clearly not desirable given the already high levels of trade deficits.
He said that the PM also agreed to look into the balance demands. The PM committed to resolve the issues within the next two to three days. The millers felt relieved to realize that the PM was aware of the severity of the malaise in which the textile spinning industry when the spinners pointed out that their industrial revival has moved from Aspirin stage to Antibiotic stage but the PM went one step further by stating that the textile spinning sector did not need antibiotic but major surgery.
The spinners insisted that they did not want handouts but to be put back into the same costs structure as they were in during 2004. They reiterated the Governments repeated commitments of consistent policies and level playing field, Adil added.
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