RECORDER REPORT

LAHORE: All Pakistan Textile Mills Association (APTMA) Chairman Aamir Fayyaz has demanded immediate withdrawal of SRO No.848/(I)/2018, as it would adversely impact the entire textile industry value chain.

The caretaker federal government has withdrawn SRO No.48 and issued SRO No. 847 effective from July 15, 2018, which imposes customs duty on import of cotton @ 3 percent Customs duty and 2 percent additional Customs duty.

APTMA Chairman Aamir Fayaaz in a statement issued here on Tuesday said the Association had earlier written to the caretaker federal government that the outgoing federal cabinet had held its last meeting late in the night on the very last day of its existence and tried to appease their constituencies in South Punjab and levied a premature customs duty on the import of cotton with effect from 15th July 2018. He further pointed out that the outgoing cabinet had set aside the normal procedure of taking the matter to the Economic Coordination Committee of the Cabinet before approval of the same. The Textile Ministry had already put in its reservation and opined that it should not be done at this stage.

He said the cotton prices are attractive for the farmers as well as ginners at this point of time and there is no need for any market intervention.

He also said caretaker government has endorsed the anti-industry decision of the outgoing cabinet and intervened the market to deter the competitive price factor.

He said this SRO would marginalize the positive impact on exports at present and cripple down the industry’s revival efforts ahead of the arrival of next crop. The caretaker setup should support farmers directly instead of burdening the entire value chain of the industry.

The APTMA Chairman has apprehended that there would be further closures in case such a stringent measure of Federal Board of Revenue goes unnoticed.

He said the industry would not sustain cost escalation therefore the caretaker government should withdraw the SRO immediately. He added that only the new government should decide about the fate of this matter.

He pointed out the textile industry is the mainstay of our economy and has significant forward and backward linkages. Presently, the textile industry is passing through a period of unprecedented crisis. Consequently, textile exports have fallen by $1.25 billion over the last three years. One of the major reasons of this crisis is the shortage of cotton.

He said the cotton production has fallen by 22 percent both on account of decline in productivity and decline of the area under cultivation during the last three years.

He has urged the caretaker government to withdraw SRO No.847 to save industry from a total collapse.