APTMA Proposes Revival of Dormant Yarn Units to Counter Shortage

The All Pakistan Textile Mills Association (APTMA) has suggested that instead of importing yarn from India to remedy the shortage of yarn, a better alternative would be to revive the yarn units that had been shut down due to the pandemic-induced lockdown.

The APTMA has suggested that the 10 to 15 yarn units that had been hit severely by the ongoing pandemic resulting in the cash flow crises could help to deal with the shortage.


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The yarn units in concern had contributed approximately $1 billion per annum to the export sector. Moreover, the resumption of their operations will also enable the employment of more than 15,000 people and multiple unquantifiable indirect jobs.

Without the resumption of operations, these textile mills are suffering from liquidity crises in addition to being on the verge of collapse due to pandemic-related pressures and the change in the Sales Tax regime.

The APTMA has written a letter to the Adviser to the Prime Minister on Textile, Abdul Razak Dawood, and asked for a discounted financing scheme amounting to $300 million for the acquisition of the textile units under concern.


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The association has proposed that these units be taken over by larger and reputable textile companies and that with minor modification and up-gradation under new and seasoned management, these “low-hanging fruits” can be put back on track for production to continue contributing $1 billion per year in exports to the economy.

The association also pointed out that if these companies are neglected, the projected losses may be long-term and may exceed the interest margin on $300 million concessional financings.

The cost-benefit analysis clearly highlights that the continued operations of these units will yield sizeable economic returns.

The APTMA also said that the identified companies are creditworthy with no current default, and that “the transaction of purchase will follow all prudential regulations with no write-offs of any debt under all circumstances”.



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