The meeting was attended by Makhdoom Shahabuddin, Federal Minister for Textile Industry, and representatives of all leading textile associations and chambers of commerce and industries.

All credit goes to President Zardari for extending full ownership to textile industry, declaring 2011 as the Year of Textile and activating the bureaucracy to follow the APTMA guidelines in true letter and spirit, said the young and dynamic APTMA Chairman Gohar Ejaz.

It may be noted that Chairman APTMA Gohar Ejaz had suggested five initiatives on textile industry way forward during APTMA annual dinner held at presidency on March 11 on the desire of President Asif Ali Zardari.

These five initiatives include revamping agriculture research for increase in cotton productivity and other raw materials, 24/7 energy supply, zero rating-regime for textile value chain without hassle of refunds’ accumulation, competitive interest regime andmarket access.

APTMA chief said President Zardari has resolved the issue of zero-rating regime for the textile industry once and for all. The agriculture productivity plan is on the anvil, he added. Further, he mentioned that short and medium term energy supply solutions are under deliberations in between APTMA and government policymakers.

However, he has urged the government to extend importance to initiatives like competitive interest regime and market access.

According to him, a competitive interest rate regime is very important to attract investment to textile industry, to create new jobs, produce exportable supplies to achieve $25 billion exports by 2014-15. He said allocation of funds under Technology Up-gradation Fund Scheme (TUFS), besides an instrument from the State Bank of Pakistan (SBP) is urgently awaited to implement both textile and trade policy initiatives.

It is worth noting that the TUFS speaks about 50% interest rate reduction up to 5 percent on capital intensive projects for investments in specific areas of industry.

On market access, said Gohar Ejaz, the Ministry of Commerce and APTMA have interacted recently but it still demands an expeditious approach for public/private initiative on lobbying the genuine case of Pakistan in US & EU for market access.

Chairman APTMA has expressed the hope that an implementation of the APTMA-proposed way forward would materialize the dream of economic turnaround in Pakistan.

“This has never happened before as a truckload of cotton valued just the same as any other agricultural commodity,” said Chairman All Pakistan Textile Mills Association (APTMA) Gohar Ejaz. Now with cotton rates at Rs11,500 per maund, a 17-ton truck or container is worth Rs5.21 million, he added. He said a truckload of yarn was valued Rs6.93 million.

“We have been receiving complaints from our members about snatching of truckloads of ginned cotton or yarn for the last two weeks,” he added. APTMA chairman Gohar ejaz said that the association apprised the Punjab chief minister about the grim situation a week ago and he promised to ask the law enforcing agencies to increase vigilance. “Last night, I lost 200 bales of ginned cotton worth Rs10 million procured from a ginner in Bahawalpur as the truck reached near vehari,” he added.

Because of these robberies, mills are getting their consignments insured. “This does shield the mills from huge losses, but it hampers the production process,” said a mill owner who lost a truckload of yarn last week.

A high level APTMA delegation has met police authorities in Lahore to discuss the strategy to tackle the issue. But being aware of the limited capacity of police, mill owners have asked tracking companies to provide them a product to monitor the movement of all their consignments.

An APTMA Chairman Gohar ejaz spokesman said that around 20 cases of truck snatchings have been reported by the members. He said many cases might have gone unreported. He said APTMA had advised its members to take all precautions with their consignments till the association makes a fool proof arrangement to stop these robberies.

Gohar Ejaz warned the industry may suffer serious production losses in the absence of smooth supply of gas, already left behind in the international market due to Pakistan’s image problem abroad.

He was leading a delegation of APTMA members in a meeting with Managing Director SNGPL A. Rashid Lone on Tuesday. Gohar Ejaz expressed serious concerns of the industry over unprecedented gas supply suspension this winter, causing serious production losses.

He said the textile industry is being denied gas supply for four days a week, contrary to the decision of the ECC for disconnection of two days a week only. The decision was made in the meeting held with the Prime Minister of Pakistan in the presence of Chief Minister Punjab wherein APTMA Chairman presented the case regarding supply of gas to the industry for five days a week in winter. Since the gas shortage in winter on SNGPL system was around 600 MMCFD therefore disconnection should not have been more than 15 percent had it been shared equally by all consumers. But unfortunately, the whole burden of gas shortage has been shifted to the textile industry, resulting in four days disconnection and three days’ supply a week, he added.

Gohar ejaz said the textile industry has already witnessed a gas cut of 54 days during last three months, starting from middle of November 2010 as of 23rd February 2011. This is causing serious concerns for the textile industry on SNGPL network competing within the country.

The APTMA delegation has urged the MD SNGPL to provide uninterrupted gas supply to the industry from 1st March to enable industry to meet international commitments.

The MD SNGPL A. Rashid Lone assured Chairman APTMA of all possible means to provide uninterrupted gas supply to the textile industry from 1st March 2011.

It may be noted that President Asif Ali Zardari has declared 2011 as the year of textile. It is therefore imperative for utility supply companies including SNGPL to ensure uninterrupted energy supply to the textile industry for meeting export, investment and employment targets set for the year.

All Pakistan Textile Mills Association (APTMA)

Speaking at a press conference, All Pakistan Textile Mills Association (Aptma) Chairman Gohar Ejaz said suspension of gas supplies to the industry in Punjab was a violation of the federal cabinet decision and the prime ministerial instructions.

The cabinet and the prime minister had instructed the Sui Northern Gas Pipelines Limited not to interrupt gas supplies to the export-oriented textile industry for more than two days a week even during winter.

Mr Ejaz said the gas utility had flouted these instructions during January and February and now it had announced an increase in duration of gas cuts to five days a week from the next month.

He said President Asif Zardari had declared 2011 as year of textiles. “How can we survive and execute export orders by working two days a week?” he asked. He said one million jobs would be lost because of the gas supply suspension.

Aptma Vice-Chairman Shahzad Ali Khan warned of serious consequences of gas cuts, fearing it could lead to violent protests. “The mill owners would join their workers in streets if the decision on gas load-shedding is not withdrawn in 48 hours,” he said.

Pakistan Hosiery Manufacturers Association Former chairman M I Khurram said the cuts would devastate the value-added apparel industry that had recently came out of high yarn prices by passing on a part of price to the foreign buyers. He said the cost of production would increase if any alternate fuel, instead of gas, had to be used and execution of export orders would badly suffer.

A leading mini steel miller, Mehr Kashif, said gas and power were the two major inputs of the steel re-rolling and plastic industries. He said the mills could not survive if they had to use alternate high-cost fuels like diesel or furnace oil. He said thousands of workers would have to be laid off if normal gas supply was not restored.

Lahore Chamber of Commerce and Industry President Shahzad Malik called upon the prime minister to save the industries in Punjab from disaster by getting gas to the industry restored.

Dawn.com article

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