Pakistan’s Textile Industry Is on the Verge of Closure: APTMA

All Pakistan Textile Mills Association (APTMA) said that country has already entered in an era of de-industrialisation where industries are closing. Almost 140 textile mills have already closed their operations and about one million workers have lost their jobs, with another 75 to 80 mills are on the verge of closure.

This was stated by All Pakistan Textile Mills Association (APTMA) Sr. Vice Chairman Zahid Mazhar in reaction to Federal Secretary Ministry of Commerce Muhammad Younus Dagha’s statement in which blamed the textile industry itself for its decline. He was referring to a meeting held last week at Pakistan Hosiery Manufacturers Association where Mr. Dagha passed these remarks and stated that the Pakistan Textile Exports have shown decline during the last four years because of the high cost of doing business, a figure that is the highest in the region.

Zahid Mazhar said that country’s textile industries are on the verge of closing, In 2005, the share of manufacturing in the GDP was 19% which has now fallen to 13%. He said that the textile industry has been hit hard due to the high cost of energy sources, resulting in making Pakistan’s exports noncompetitive in the global market. The cost of production of both gas and electricity is about 30 percent higher than in other competing countries in the region like Bangladesh, India and Vietnam.

“Trade deficit for the last fiscal year was recorded at an all-time high at US$ 32.58 Billion, with imports at $53 billion while exports were recorded at merely $20.45 billion, which was the lowest figure after fiscal year 2009-10,” Zahid Mazhar added.

To save the industry the government must remove the Gas Infrastructure Development Cess (GIDC) that is levied on gas supplies. He further demanded that the government should provide gas at the regionally competitive rate of Rs. 400/MMBTU as was earlier announced by the ECC in November 2016 but was not implemented in practice.

        • India and Bangladesh have low cost of production due to low wages, labour low price utilities and rebate around 15 % whereas in Pakistan high cost labour, higher utilities, less than 1% rebate, no refund money of gst, no payments againt prime minister scheme

          • Oh Bhai : Bangal K Manager Ko Waha Ki Industry 10,000 TAKA Bhi Nahi Deti :
            Yaha Wahi Manager 100,000 Rupee Se Upper Le Raha hai :
            DTRE, SRO 1125 SRO 136 Special Certificate K Zaryeh Zero Rated Main Textile Product Import Ho RAHY Hai :
            High Labour Pay Scale, High Admin Expense Etc Production Cost to High Hoga He :
            Aur New Scheme hai : 10% Se Zaida Next Month Sale Karo Government Refund deti hai :
            Her Meter Par 25 Rupee Profit Hai Textile Walo Ka : Month 50Lac Meter Se Zaida Sale Hai
            Textile Main Ho Aur DIRECTOR MD Se Closed ho Mujhy Pata hai Sub

              • That is fact i was told you jitna textile main ghus chukca ho uthna ap aghe aye nahi ho :
                Textile Kabhi Nahi Roti APTMA Roti hai : Hum ne kabhi letter nahi likha APTMA, Etc Ko Hamay Ye PRoblem hai Aur Hamare Janne Wale Koi Bhi Nahi Likhte : I am working in textile industry not in FREIGHT

  • its a mafia textile mafia they are blackmailing the government from last few years every now and than i see adds in paper that they are on verge of closer how come they sustain that verge from last couple of year if they are not doing well its just to blackmail the govt and get gas to lower their cost of production and earn more profits.

    • if govt is blackmailing then govt should reveal the truth to the public and media.being silent makes them criminal….

  • It is not just Energy cost, experienced labor is expensive in Pakistan, and will get even more expensive when these guys get better opportunities overseas. If they Govt. is paying 8% Markup on Foreign loans, they can use same money to provide energy at discounted price, and avoid foreign debt. Energy Theft is another issue, since Distributors can charge theft to consumers, they don’t show any interest in catching thieves, and keep raising prices of Energy.

  • An industry does not shut down in a year.. it takes time. as mentioned in the artilce, 140 mills have closed opertations and others are on the verge of closure. bieng an employee in textile industry i can vouch for the high production cost. So many of customers of my company has swtiched to bangladesh because of our high cost of production.

    • Utility overheads indeed one of the major factor keeping us out of competition the other factor is the value addition neither in human resource development nor in product.

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