Islamabad [Pakistan], December 25 (ANI): The All-Pakistan Textile Mills Association (APTMA) has warned the Pakistan government that the country's textile exports could fall below USD 1 billion a month from 2023 onwards, reported Geo News.
The APTMA asked for the government's help to save the textile sector.
The APTMA in a letter to Pakistan's Prime Minister Shehbaz Sharif on Friday said: "The textile industry is using less than 50 per cent of its capacity. Many have already lost their jobs and lack of corrective action will lead to further job loss."
The association said that the problem can be attributed to floods which destroyed the cotton crop and led to supply chain disruptions. "They added that only 5 million bales were produced this year, whereas the industry requires 14 million bales, adding that the forex issues have shrunk cotton imports and other vital intakes necessary for exports," according to a report in Geo News.
The report also says that: "APTMA urged the government to restore SRO 1125, zero-rating for the textile value chain, and collect sales tax on domestic sales at the point of sale. It demanded an immediate refund of all deferred sales tax, tuff, and other dues and an extension in the duty drawback claims submission date for FY21."
According to APTMA, export-oriented units which needed to yield funds to service debt were under enormous strain.
The crisis will lead to massive defaults, further curtailment of capacity, and a possible banking crisis, the association said.
Recently, the media reported that due to the adverse conditions of Pakistan's textile industry following devastating floods, a Pakistan trade body approached the Shehbaz Sharif government to allow the import of cotton from India.
In the wake of losses suffered by cotton producers in Sindh and Punjab, the Pakistan Textile Exporters Association is proposing trade with India through Wagah to meet the rising export orders, the Dawn newspaper reported.
A total of 25 per cent of the standing cotton crop had been damaged and there is a possibility of a raw material shortage in Pakistan, the Pakistani newspaper said citing early estimates from exporters.
On Wednesday, the Pakistan government formed a committee that will negotiate with seed companies and facilitate them to introduce state-of-the-art cotton seeds into the local market.
This decision on forming a committee was reached during a key meeting to consult with stakeholders and review proposals for the enhancement of yield and area of cotton crops, the report said. (ANI)