The mighty over two dozen textile firms are reportedly still using their personal influence to get about Rupees 15 billion from the government, despite the fact that Commerce Advisor has taken public position, well informed sources told Business Recorder.
The firms, sources said, asked the Ministry of Commerce which also deals with textile sector to send a summary to the Economic Coordination Committee of the Cabinet as they have convinced Dr. Abdul Hafeez Shaikh, Prime Minister’s Advisor on Finance and Revenue, for compensation.
On April 1, 2020, Abdul Razak Dawood, Prime Minister Advisor on Commerce, Industries and Production and Investment, stated that a few firms made a commercial decision to take risk and sold forward US dollars. They are now asking government to cover their losses of Rs 15 billion.
However, he felt this is not fair as it was a business decision which did not work out. It was also discussed at highest level and his views were supported. It has therefore been decided that the government will not compensate these firms from taxpayers’ money.
An official told this scribe that the firms took independent decisions with respect to hedging of dollar when they felt that the price of dollar is on the decline. However, when dollar’s value rebounded they approached the government for compensation.
The official was of the view that if the government accepts the demand of over a two dozen firms, it will be a crime.
Meanwhile, All Pakistan Textile Mills Association (APTMA) has also distanced itself from these firms, saying that the Association does not support any compensation to “big boys” maintaining that in any case it will be unfair to other textile sector exporters.
