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Textile mills observe shutdown to press for industry demands

The strike, being observed for one day, comes as textile industry complains the increased cost of production made worse by the power crisis.

APTMA Chairman Tariq Saud earlier said that the industry facing a serious crisis. “We want to tell the government that we cannot move forward in the current circumstances because the rising cost of production is unbearable,” he said in a press conference.

“Shutting down factories is just to show the government that the situation is alarming,” said Saud, when asked whether this protest is aimed at pressurizing the government to announce the upcoming textile package.

The situation is turning into a crisis because about 25% of our members have already closed down their factories, he added.

This government has burdened the textile industry with Rs38 billion in Gas Infrastructure Development Cess (GIDC), Rs78 billion in electricity surcharge and Rs65 billion in innovative taxes. The total impact of this burden comes to around 12% of total sales of the industry, he said.

The production cost has increased due to the levy of GIDC and increase in gas tariffs, he said. The cost has reached to $6.7 per million million British thermal unit (mmbtu) compared to $4.2 mmbtu in India, $3.1 mmbtu in Bangladesh and $4.2 mmbtu in Vietnam.

Industry sources said that the energy supply mismanagement, comparatively high cost of production and lack of new investments are holding Pakistan back.



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