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

[VCheng]

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!

They are part of APTMA. I try to stay clear of such claims and counter claims for situations that are in flux. There is much disgruntlement for many reasons, but also an appreciation for how difficult the way forward will be, let me just say this for now.

 

[Arsalan]

They are part of APTMA. I try to stay clear of such claims and counter claims for situations that are in flux. There is much disgruntlement for many reasons, but also an appreciation for how difficult the way forward will be, let me just say this for now.

Great. Garment or Home textiles?

These are not CLAIMS or COUNTER CLAIMS!! Just a mistake on part of media reporting really There was no strike from APTMA, all mills are running as usual.

 

[VCheng]

Great. Garment or Home textiles?

These are not CLAIMS or COUNTER CLAIMS!! Just a mistake on part of media reporting really There was no strike from APTMA, all mills are running as usual.

You are correct, there has been no strike declared by APTMA as of yet.

 

[Arsalan]

You are correct, there has been no strike declared by APTMA as of yet.

Yes. And there are no plans of any strike either. There wont be one, not about taxes anyway.

 

[VCheng]

Yes. And there are no plans of any strike either. There wont be one, not about taxes anyway.

But people are worried about the general business environment and the economic situation.

 

[Arsalan]

But people are worried about the general business environment and the economic situation.

Yes they are, firstly because of the uncertainty and secondly because they are being presented a very grim picture by media, no news is as good as bad new right?
The main concern of people is "we will have to pay tax". You can understand how the situation is then. The local market business community is pissed off as they have been doing business worth millions per month and were not even registered, it will hurt them if it all changes.

 

[VCheng]

Yes they are, firstly because of the uncertainty and secondly because they are being presented a very grim picture by media, no news is as good as bad new right?
The main concern of people is "we will have to pay tax". You can understand how the situation is then. The local market business community is pissed off as they have been doing business worth millions per month and were not even registered, it will hurt them if it all changes.

There has to be a huge change in the mindset pretty much all across Pakistan, from top to bottom, if there is to be progress. Pakistan clearly cannot continue like it has for the past several decades. Something must change. Some will change willingly, but most will have to change unwillingly, but change they all must.

 

[marif70]

It is a matter of change of mind set which was corrupted during the previous rules.
It is now or never We need to change, We need to change ourselves.
Now it is time for every individual to be part of the nation building. It is better to do it happily and willfully.

 

[The Accountant]

A few additions and corrections if i may:


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.


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.


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.


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.


True. Market update is that the mills are running as of today.


Perfect, i will keep that in mind bro!


Nahi bahi, millon wala ni hoon mein!!

If i tell you that for high fashion product the margin is much much higher ? Total direct material cost of finsihed product and its sales price is atleast double ... now do the backworking and eleminate the cost of stitching designing printing weaving and spinning; cost of cotton is no more than 15 to 20 %. Thats i am sure and have actual ratios from some of the biggest fashion retail brands of Pakistan

Your ratio might be correct for home textile type of products sold to big brands by smaller units but not for locally branded products.

Why are you including GST in your cost ? GST is refundable. At max you should include interest cost of financing the pending refund and that will not be more than 2% even if your refund remain stuck for a year. However now government is introducing refund in drawback mode i.e. you will get significant porrion of refund with the remittance of export proceeds so this will improve significantly.