Imposition of regulatory duty on export of yarn: Aptma formulates strategy to counter the impact-Texglobe

MULTAN (May 18 2010): All Pakistan Textile Mills Association (APTMA) South Punjab met on Monday under the chairmanship of Muhammad Anees Khawaja to formulate a strategy to counter the impact of the decision taken by Ministry of Textile on May 13, regarding implementation of 15 percent regulatory duty (RD) on export of Yarn.

The co-ordinator Aptma Multan Zone said that the decision of the government was unjust, biased and discriminatory which would destroy the entire spinning industry. To address the problem and register the protest of Spinning Mills, press conference would be held at Multan Press club on Tuesday (today).

Mian Rahman Naseem, Mian Amir Naseem, Mian Aashir, Mian Hussain, Sh Tanveer, Mian Atta, Chaudhry Muneer, Fareed Mughees Sheikh. Dr Khalid Khokhar, Dr Kashif Riaz, Mian Alamgir Mughal, Kh Muhammad Younus and Chaudhry Amanat would attend the press conference followed by protest rally, he informed mediapersons.

M Anees Khawaja said, "When the government imposed the quota of 50000 tons for the export of yarn, it was a clear breech of market mechanism. In January, in the meeting with the spinning Mills the federal committee had assured to sympathetically consider their viewpoint as well.

Contrary to what was promised, Ministry of Textile, taking the side of so called trade association belonging to the made/ups sector influenced by their malicious propaganda, further reduced the quota to 35000 ton. "He raised the point that despite severe blows to spinning sector, though Aptma showed its concerns over implementation and then further reduction in quota, but being a responsible trade body, we did not take any stand and for that we are taken for granted," he said.

He added, "The spinning sector is very important player in textile industry contributing $5.5 billion to the ancillary industry and exporting $1.5 billion surplus yarn. The ancillary industry should understand that if spinning sector is doomed, it will not be feasible for them to import expensive yarn and survive." He added that just to maximise profits, the value-added sector should not threat the spinning sector instead it would be better that they invest in new technologies to reduce their cost and maximise their profits by improving quality and production.

Speaking on the issue of adverse effects of the 15 percent RD on Yarn export for the 60 days, he termed it heinous and malicious in nature. "It is worst of its kind and decided under pressure without calculating the toll it will have on our weak industrial sector and economy. It is an outcome of malicious intentions based on maximisation of profits of so called value addition sector, which has discovered this shortcut instead of making investment in their obsolete infrastructure."

He said as result of this decision, the spinning sector will have to bear a loss Rs 20 billion, which it could not afford in the present circumstance. "This act will have bad effect on economy as the poor farmers will be deprived of their due share in the benefits of better market price, hence will be discouraged to grow more next year, in this way at one end we will lose value foreign exchange but have to spent extra to import to meet our domestic requirements. This decision has not only aggrieved our poor farmers but credibility of Pakistani spinners in international market is at stake," he said.

He condemned the move and said that Aptma would seriously protest against this and would launch a countrywide campaign. He said that all the spinning industry was unified under the umbrella of Aptma and would protest till the decision regarding RD is taken back. "The entire spinning sector will observe strike on 18, 19 May and in case the government does not listen to our problem, it can be extended to indefinite time," he said.

Protest rallies will be held on May 18 at (Faisalabad, Multan Road, Bahi Pheru, Nooriabad, Karachi) and on May 19 at (Sheikhupura, Multan, Gadoon Amazai). He said that their struggle was solely aimed at creating better economic conditions for all the sectors of economy without prejudice and discrimination.