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

[Abu Shaleh Rumi]

Every Pakistani mill (textile) that went to Bangladesh are back

Hope you all the best...

 

[Dubious]

so you agree that Bangladesh has a much more favorable environment for business as compared to Pakistan. and now that IK has happened, all the rest will move there too. causing massive unemployment in Pakistan. bringing the exports down to zero.

Bangladesh also has taxes and red tape and what not, but business is thriving there. not the case here, despite a much more undervalued currency, why is that? Looks like IK doesnt know what he is doing.

Did this start now? Nope the currency devaluation has been an ongoing issue and people moved during NS's tenure too but no one saw that...I remember a thread where businesses closed and moved to BD from Faisalabad...I highlighted it after the OP article....but not one was ready to "bash" NS and his policies!

IK needs time to undo a mess ...but I also agree he is behind schedule and too much focus is going on welfare which should have been a later project when economy stabilized!

Power looms were sold by weight to salvage iron from them by melting during last two years of Nawaz Sharifs government did anyone heard a peep on media about that ???

My uncles are associated with this industry(30 years plus) so are my other family members and the last two years 2016/2017 were the worst in the history of Pakistan for power looms no joke .

These APTAMA walas did not observe any strikes as PMLN government would sort them about via there usual gulu butt ways and government machinery

Did you know that manual power loom labor rates are increased each year 7% which did not increase for two years year 2016 and year 2017 but increased in 2018 under Imran Khan's government .

This is the so called progress of Nawaz and Ishaq Dar Manage the media and All is well

Problems were hidden during NS's tenure now they are open people think it happened yesterday!

Such crises takes years to decades to build not days nor months!

 

[S.Y.A]

Did this start now? Nope the currency devaluation has been an ongoing issue and people moved during NS's tenure too but no one saw that...I remember a thread where businesses closed and moved to BD from Faisalabad...I highlighted it after the OP article....but not one was ready to "bash" NS and his policies!

IK needs time to undo a mess ...but I also agree he is behind schedule and too much focus is going on welfare which should have been a later project when economy stabilized!

This in response to the comments that Bangladesh too has taxes etc. apparently even with taxes and stuff they are able to promote exports. what are they doing right that we cant figure out? the same businessmen who cant afford to export here, happily do so from there.

 

[Type59]

So is there a strike?

Thread is full of valid points from all sidea.

 

[Dubious]

This in response to the comments that Bangladesh too has taxes etc. apparently even with taxes and stuff they are able to promote exports. what are they doing right that we cant figure out? the same businessmen who cant afford to export here, happily do so from there.

Yes, what is BD doing right that we cant seem to achieve?

 

[S.Y.A]

Yes, what is BD doing right that we cant seem to achieve?

I am asking you, you are the one defending the govt. clearly devaluing the currency doesnt help. their currency is stronger than ours.

 

[Dubious]

I am asking you, you are the one defending the govt. clearly devaluing the currency doesnt help. their currency is stronger than ours.

devaluing was supposed to help with remittance! I doubt with anything else...

I didnt defend the govt...I gave what could be the case...And I have agreed that the economic situation should be priority instead of welfare which should have come later

 

[jericho]

APTMA announces closure of 200 mills from tomorrow, as buyers cancel export orders

Listen

KARACHI: The All Pakistan Textile Mills Association (APTMA) has announced closure of 200 of its processing mills from Monday, July 1, as international buyers rejected export deliveries of the mills due to price increase.

APTMA in a press statement said a meeting of around 200 mills was held in Karachi on Saturday, where members said that their buyers had refused to pay the new prices for their orders. Thus, the millers had decided to shut down their operations from the first day of the new fiscal year.

Earlier, APTMA Sindh-Balochistan Region Chairman Zahid Mazhar had said that an increase in gas tariff by 31 percent was the last nail in the coffin of the general industry and the textile industry in particular.

He said the textile sector was already facing unbearable costs of manufacturing, which were very high as compared to the regional competitors.

Due to the high cost of doing business, inadequate supply of raw material, drastic increase in interest rate, and liquidity constraints due to the delay in refunds of sales tax, almost 140 textile mills had already closed their operations.

That he said resulted in about a million workers losing their jobs. “Around 75 to 80 mills are on the verge of closure, which will add to the unemployment figures by another 0.5 million workers employed in the textile industry,” he added.

Speaking about the removal of the zero-rating facility for the five exporting industries, Mazhar said the textile sector had not yet come out of the shock of the government’s adverse decision to withdraw the zero-rated facility.

In Federal Budget 2019-20, the government decided to withdraw the statutory regulatory order 1125(I)/2011, which allowed zer-rated sales tax on inputs and products for the five major export-oriented sectors – textile, leather, carpets, sports goods, and surgical instruments.

He said that as if that was not enough, the government was going to hit the industry with another blow in the shape of increased gas tariff.

He said the gas tariff for industry in Bangladesh was $3.0/MMBTU, which was more than 50 percent cheaper than Pakistan.

He further said that due to the closure of about 140 mills, and the mills operating under capacity, Pakistan’s textile exports were suffering an opportunity loss of more than $4.0 billion per annum.

APTMA Sindh-Balochistan Region chairman demanded the government to save the export-oriented textile industry and Pakistan from complete disaster by not increasing the gas prices.

He also asked the government to instruct the gas utility companies to meet their revenue requirements by strictly following the UFG benchmark in accordance with the international best practices, and reducing other expenses with better management.

Last week, the Economic Coordination Committee (ECC) of the Cabinet approved the decision to increase the gas tariff by 31 percent for the general industry, power plants, cement, and fertiliser, etc.

The new tariff would be enforced from today, as was agreed with the IMF. Consumers of gas would be paying up an additional Rs170 billion, including the increased in GST
https://www.thenews.com.pk/print/49...-from-tomorrow-as-buyers-cancel-export-orders

Finance advisor just denied this in ARY interview today along with IK and FBR chairman

For example, the case of this thread here. APTMA going on strike as per media. That is also a lie. APTMA mills are all running and i went to one today! No talk about any strike at all and here we have a thread with 100 posts discussing the strike that actually is not real to begin with

You are right. IK , Hafeez Shaikh and Shabbar Zaidi in ARY news interview today, the finance advisor said this news is not true

 

[Jango]

The strike is not by APTMA, but by about 20 mills in Faisalabad who are making a ruckus about the 17% GST by the government in place of a blanket zero tax regime for them.

You won't be getting any prizes to get their motive here.

Hint: Selling product in local market.

 

[Asian.Century]

Good move. This government supported by Army IsI has made common life hell. Everything has gone expensive.

 

[Ahmet Pasha]

Tabdeeli a nai rai
A gai hai

 

[Arsalan]

The strike is not by APTMA, but by about 20 mills in Faisalabad who are making a ruckus about the 17% GST by the government in place of a blanket zero tax regime for them.

You won't be getting any prizes to get their motive here.

Hint: Selling product in local market.

Finally someone who know what a joke this news was and with respect, how irrelevant all this discussion have been. Are you from Faisalabad? Or related to Textiles?




Ok all members, here is the detail that i have been holding off. While you were all discussing how this strike will destroy the exports and how MILLIONS will be left jobless, the whole thread was on a stupid fk up by media really. APTMA never went on strike. I dont know where the retard media got this news from but all mills under APTMA are running as usual. The call for strike was from APTPMA!! Now lets take a minute and see how pathetic out media is. The confused APTPMA with APTMA but what about the rest of the news? They quoted chairman APTMA, QUOTED HIM as in reprating his exact words while APTMA was never even involved in this whole saga. They fabricated the whole story then? cooked it all by themselves???


APTPMA is All Pakistan Textile Processing Mills Association.
These are the narrow with processing mills that deal in local suiting cloth. They announced a strike and even they failed to observe a complete strike/shutter down. The question here is, how will the strike of mills supplying local market effect exports? Why are they going on strike, dont we all agree that local supply SHOULD BE taxed??

I told you friends, there is much more to it then we all are discussing or know about. I will try to explain it all in more detail later on.

Yes, what is BD doing right that we cant seem to achieve?

BD is in fashion and garment industry, we are mainly in home textiles. Much of the cries about BD taking OUR share of business was BS!

 

[Dubious]

The call for strike was from APTPMA!!

Play of words and psychology on joshy awaam

17% GST by the government in place of a blanket zero tax regime for them.

Like I said before many are used to hand outs

 

[Arsalan]

Play of words and psychology on joshy awaam

Not just that, they mistook APTPMA for APTMA, that much in ok. The problem is the statements and quotes they reported from Chairman APTMA!! When there was no strike from APTMA were all those quotes fabricated?

Like I said before many are used to hand outs

Actually, hand outs are ok and given to every export oriented industry everywhere. The issue is our people misusing it for the local supplies as well.

Being from this industry myself, my only concern is the GST refund mechanism. If gov. can ensure refund (for exported goods) in time without any delay or need of bribes i am fine with this decision. Also the rebate mechanism should be improved. From business viewpoint if we get rebate after one year it is of little use and is not a true incentive. Fix these clerical procedures and we are all good to go!! A few other tweaks will be great if possible but if not still its ok for now.

 

[Republic]

Yes, what is BD doing right that we cant seem to achieve?

You can achieve every thing, but you have to start from where Bangladesh started 15 years ago. It is not a matter of only rules or subsidies/taxes. It takes a whole structure of technology, supporting industries, infrastructure, atmosphere and many more things.

You can achieve it in less time than Bangladesh, but certainly not over night.

I have some suggestions for IK to start with.

1. He must declare ECONOMIC EMERGENCY in first place. This step will give him many powers to reform.
2. He should completely ban all import baring life saving drugs and strictly impose this ban on government employees, system and offices with some harsh punishment.

3. He must take over all such closed industries which were providing employment to masses, expel the higher and middle management and bring retired army officers. Renegotiate all cancelled deals and try to fulfill the obligations on the previous rates.
4. Learn from the microfinance system of Bangladesh and start implementing it in Pakistan. Give petty loans to local artists, traders, for daily business needs which can be recovered on very small daily instalments in the evening and motivate them to meet local demand.
5. Convert all local Madaras into industrial training institute (ITI schools) and force all Talibs through ordinance to learn some skill of their choice which can help in production. These people will become the feeder strength for such petty production units, trades and bigger industries.
It is very very important to create loosely self sustaining many local economies first and then go for export.
Best of luck.