APTMA validates Prime Minister’s commitment to regulate cost of business

October 22, 2018 (MLN): Mr. Zahid Mazhar, newly elected Chairman of All Pakistan Textile Mills Association (APTMA), Sindh Baluchistan region, has appreciated Prime Minister Imran Khan’s firm commitment to reduce the cost of business and to improve the country's exports.

In a statement issued to the press, Mr. Zahid Mazhar acknowledged the reduction in gas prices of 5 export oriented industries as a step to make our products internationally competitive.

However, he pointed out that in order to encourage industrialization and to revive the exports of textile sector, the government would have to address other major odds that are hurting our industry and exports, such as immediate payment of our long overdue refunds of sales tax, income tax and export, removal of duties from cotton and polyester staple fiber imports, removal of GIDC, low productivity of labor, shortage of water available for industries in Karachi, and high cost of doing business.

Mr. Zahid Mazhar expressed his hopes that the new government would implement the textile policy presented by his team during the visit to APTMA early this year, so that issues faced by the textile industry may be resolved.

Mr. Zahid Mazhar urged the new government to pay attention to the cotton crop which has witnessed a massive decline over the last few years.

Due to shortage issues, the spinning industry has to import annually almost 3.5 million bales of raw cotton every year to meet its consumption requirement. Despite of the acute shortage of cotton, there is 3 percent custom duty, 2 percent additional custom duty and 5 percent sales tax imposed on import of raw cotton, which should be removed immediately, he insisted.

He further demanded from the Government to remove Custom Duty and Anti-Dumping Duty on import of Polyester Staple Fiber, and to review Free Trade Agreements and Preferential Trade Agreements in such a way that the exports of Pakistani goods to those countries be increased.

He also requested special attention towards FTA with China since China is providing zero custom duty facility on import of textiles from ASEAN member countries, while 3.5% duty is imposed on textiles from Pakistan.

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