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All Pakistan Textile Mills Association announces closure of 200 mills from tomorrow

Just to share a personal detail with you sir, i am a textile engineer and i am in textile export business, me myself, not my friend, not his father-in-law! I am a member of these textile associations!!


No no, you are a youthiya! :D

I don't know why we have to bring in politics into everything. These are hard facts...whichever political angle you watch them through, they won't change.

And the honorable member who is saying they are on strike, did you also see the reason they are on strike for?

I have no other proof even though I have first hand knowledge. Would you believe me if I told you that my friend's father in law is a senior member of APTMA and has his own mills, that the information I had was first hand but I still did not rely on it until I read it in DAWN?

And since when is DAWN so unreliable? Why hasn't the Government acted aginst DAWN if the news is incorrect, why hasn't APTMA denied it? I also visited APTMA website and it was last updated on 28th of June.



So Hum News is more reliable than DAWN? Are you aware of the history of DAWN? DAWN, in my opinion, is the most reliable source of information as their news is not only authentic, it is posted only after verification.

DAWN has gone down the drain since the past 2-3 years, but that's just my personal opinion. Feel free to disagree.

and where have you been hiding..?

Been busy :P
 
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Just to share a personal detail with you sir, i am a textile engineer and i am in textile export business, me myself, not my friend, not his father-in-law! I am a member of these textile associations!!

Then you probably know a few of my in-laws family. :D
 
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Just to share a personal detail with you sir, i am a textile engineer and i am in textile export business, me myself, not my friend, not his father-in-law! I am a member of these textile associations!!
You should put a detail article on Pakistani Textile industry and how we can use it for maximum capacity.
 
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Well you have no idea of Pakistani textile and also not about the financial management and pricing. Let me tell you the areas where you are factually wrong.

  1. Pakistan do import cotton in some years and export in others. We have significant cotton production but import and export is based on local production and international prices. For example if its a drought in Pakistan so local production is low then we have to import and if its a bumper product and drought in India then we will export to India.
  2. Cotton is very small portion in overall supply chain. What do you think what will be the cost of cotton in overall sales value of final product? It can be more than 15% to 20% for branded items (like Levies manufacturing factories of Pakistan) and 30% to 50% in sales of finished goods to brands such as IKEA, rest of the cost pertains to machines, labor, administration, utilities, infrastructure and others.
  3. So while in case of devaluation of 50% of PKR our sales value in local currency will increase by 50% but you input will increase for imported material only which can be a small % of cotton and chemicals (may be between 10% to 30% considering a lot of cotton will still be local). Whereas your labor cost, depreciation, and infrastructure costs are constant whereas utilities cost got increased only marginally in comparison to increase in sales value.
  4. On overall basis, the exporter will get a lot of benefit in increasing the export sales.
By the way this whole drama was a fake news by the newspaper. APTMA has already declined any call for strike or unit shut down.

Probably. Am not an expert or have knowledge on textile businesses. But if the APTMA provide details on their raw material import value and how it has affected business it will be more believable.
 
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Probably. Am not an expert or have knowledge on textile businesses. But if the APTMA provide details on their raw material import value and how it has affected business it will be more believable.
I am making my claim based on some actual numbers
 
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You should put a detail article on Pakistani Textile industry and how we can use it for maximum capacity.
I have asked the association to share all detailed numbers, their concerns about taxation etc. Will try to write something

Then you probably know a few of my in-laws family. :D
If they are in Faisalabad then most probably, if in Lahore than may be indirectly. We were a batch of around 50, all textile engineers and most of us in this field! :)
 
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I have asked the association to share all detailed numbers, their concerns about taxation etc. Will try to write something


If they are in Faisalabad then most probably, if in Lahore than may be indirectly. We were a batch of around 50, all textile engineers and most of us in this field! :)
Are you from textile industry? I am currently also associated with it and can surely help and legal and tax related matters.
 
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Well you have no idea of Pakistani textile and also not about the financial management and pricing. Let me tell you the areas where you are factually wrong.
A few additions and corrections if i may:

  1. Pakistan do import cotton in some years and export in others. We have significant cotton production but import and export is based on local production and international prices. For example if its a drought in Pakistan so local production is low then we have to import and if its a bumper product and drought in India then we will export to India.
Not some years! Every year we export some cotton and also import. Its related to quality and type of cotton required. For example, we will import some PIMA and Egyptian cotton every year as there is a demand for that in export market. Similarly we export some of our own cotton, less in bale for now but more in yarn form.

Cotton is very small portion in overall supply chain. What do you think what will be the cost of cotton in overall sales value of final product? It can be more than 15% to 20% for branded items (like Levies manufacturing factories of Pakistan) and 30% to 50% in sales of finished goods to brands such as IKEA, rest of the cost pertains to machines, labor, administration, utilities, infrastructure and others.
Actually, this is true but not for the reason you gave. The raw material or yarn will make up around 65% to 80% of the total product cost depending on the product. For home textiles, bed sheets and towels it will be close to 80%. For garments it will be around 65% to 70% will go lower for high fashion products. However please note that cotton may be 50% to 60% of the overall cost of yarn because we are using loads on poly cotton blends. That then reduces the percentage of cotton material but raw material costs are 65% to 80% as explained above.

So while in case of devaluation of 50% of PKR our sales value in local currency will increase by 50% but you input will increase for imported material only which can be a small % of cotton and chemicals (may be between 10% to 30% considering a lot of cotton will still be local). Whereas your labor cost, depreciation, and infrastructure costs are constant whereas utilities cost got increased only marginally in comparison to increase in sales value.
True. If we impose 17% GST and update the dollar conversion rate to current one in a costing we did in May, there is no difference in price keeping everything else as constant. I checked it yesterday to evaluate where we are standing right now.

On overall basis, the exporter will get a lot of benefit in increasing the export sales.
Not benefit really but there wont be much damage either. The only problem that the businessmen are actualyl worried about it loss/blockage of capital. Since they will be paying GST at time of purchase and the refund usually get delayed by 6 to 8 months that will mean that 17% of capital is blocked for 7 to 8 months which is huge. So again as i said earlier, if gov can somehow improve the process of refund we are all good.

By the way this whole drama was a fake news by the newspaper. APTMA has already declined any call for strike or unit shut down.
True. Market update is that the mills are running as of today.

Good to know that. When writing feel free to discuss any tax related query as it is my domain of expertise.
Perfect, i will keep that in mind bro!

Aap ki kapray wali mil hai
Nahi bahi, millon wala ni hoon mein!!
 
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Lahore.



Please see the above. I have a rough idea about the industry as a result. :D
Sahi!! They involved in garments or home textiles? I don't think they will be part of APTMA otherwise may be you could have confirmed what i said about the strikes!
 
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