Page 22 - April-May-2020

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APTMA urges government

to help revive

growth of textile industry

The All Pakistan Textile Mills Association (APTMA) regime besides levying duties, both specific and
Chairman has urged the government to protect the ad-valorem, with an option to enforce whichever is
domestic commerce for the revival and growth of higher, to restrict the textile and clothing goods for
textile industry. domestic consumption and consequently, the
industry size for domestic market is growing there
He said the size of illegal textile goods entering into exponentially.
domestic commerce through smuggling, Afghan
Transit Trade and mis-declaration, is equal to the He pointed out that the government may not be
size of the textile industry meant to produce goods able to persuade people to follow 'Be Pakistani and
for domestic commerce. Buy Pakistani' slogan, however, a mechanism, if
rightly followed for implementation, can still yield
According to a conservative estimate, the industry better results.
exports 70% of the total fiber consumed to produce
textile and clothing goods. The remaining 30% of He said the new textile policy is under
fiber for domestic commerce consumption is equal consideration of the government; therefore, it is
to the size of fibers entering into the market through imperative to deliberate the issue of domestic
various sources including official import of textile commerce in length and make it an integral part of
and clothing, worn clothing and informal textile and the policy to protect domestic commerce in the
clothing trade. larger interest of the industry.

Almost 1.1 million ton fiber is consumed to produce He has demanded removal of duties on fibers,
goods by domestic industry and 1.2 million ton both short for industry and also not manufactured
textile and clothing goods are entering into the domestically, impose 20 percent regulatory duty on
domestic commerce through import sources, he import of synthetic yarns and fabrics, rationalize
said and added that if the government takes tariff by reducing the up-front incidentals on import
measures and adopt mechanism to check entry of of PSF to encourage production and market
such goods into the commerce of Pakistan, both at diversification for textile and discourage misuse of
the entry and sale points, the domestic industry exemption schemes i.e. DTRE/manufacturing bond
can easily double its production to provide to stop entry of yarns and fabrics in domestic
domestically produced textile and clothing for commerce.
meeting domestic requirement of 220 million
population. He said the industry can generate new investment,
sizeable employment and high production if the
He said the competing countries have a tariff government enables it to grow.

April/May 2020