Pak industry must prepare for compliance of 27 Conventions – GSP Plus has been achieved after strenuous efforts – Governor Punjab

Karachi, December 27 2013 (PPI-OT): Pakistani industry must prepare for compliance of 27 Conventions signed by the government, in order to reap benefits from the GSP Plus status given by the European Union (EU) to Pakistan; this was stated by Governor Punjab Chaudhry Muhammad Sarwar. Speaking at the luncheon meeting at the All Pakistan Textile Mills Association (APTMA), the Governor Punjab said that Pakistan has obtained this preferential trade status after massive lobbying and efforts from the government level.

He said that Prime Minister Mian Nawaz Sharif had sent him to the European countries for seeking support from the member countries of EU in favour of Pakistan at a juncture when we were facing fierce opposition in the EU.

He said that he lobbied among as many as 100 parliament members of the EU to win support in Pakistan favour and even 8 delegates from France also voted in favour of Pakistan. He said that it is now up to Pakistan’s industry to get maximum benefit from GSP Plus.

He said that he intimated the opposing EU members that Pakistan has lost 50,000 lives in their war against terrorism. Ch Sarwar also announced to form Pakistan-EU Business Forum in order to provide help to reap maximum benefit from GSP Plus. Earlier, Chairman APTMA, Yasin Siddik said in his welcome address to bring textile exports to $26 billion from $13 billion in next five years after getting GSP Plus.

He said that it was the fruit of Governor Punjab’s sincere struggles that Pakistan today has achieved the status of GSP Plus. This preferential market access to the EU countries will be a helping hand to the economy of our country and the textile industry of Pakistan would be able to boost its exports to new markets and earn valuable foreign exchange.

He said that APTMA has undertaken a number of initiatives to keep the Textile Industry at par with global standards and expectations in respect of sustainability, corporate social responsibility, compliance, standards, conservation, best practices, gender balance and the like.

For the last six years the textile industry has been stagnant in terms of employment, exports, further investments due to infrastructural impairment on account of the war on terror, lost buyers, and lately shortage of energy. Exports of textiles which had gone up to $14 billion in the year 2010-11 were dropped to $13.1 billion in 2012-13. APTMA foresees textile exports from $13b to $26b in the next few years, an investment of $1 billion annually, creation of 1 million direct and indirect jobs every year, addition of 1 to 2% to GDP growth and a doubling of the cotton crop from 13 million to 26 million bales.

The GSP+ has once again opened the door to Pakistan to balance its trade deficits, if some crucial initiatives like securing raw material and supply of un-interrupted energy are taken at the government level, the Textile Industry can reach the country at a new heights of prosperity.

The present energy shortage poses a serious challenge to the sustainability of the industry as well as whittles down its potential to utilize cotton and to lend a helping hand to the government in meeting energy shortage, the industry is prepared to set up captive power plants run by fuels other than natural gas like solar energy, LPG mix, coal and hydel. Availability of subsidized finance, say at 3%, would help to initiate captive power generation on appreciable scale.

APTMA urge the government of Pakistan to make such an option feasible by the provision of low-cost finance. Likewise there is potential for increasing the yield of cotton crop from 13 million bales to 26 million bales by bringing about improvement in seed quality and developing remedy for Cotton Leaf Curl Virus, White Fly and Mealy Bugs.

Former Chairman APTMA, Gohar Ijaz paid rich tributes to the Governor Punjab for making sincere efforts in getting GSP Plus. APTMA Chairman (S.Z) Tariq Saud and S M Muneer and also spoke on the occasion.

For more information, contact:
All Pakistan Textile Mills Association
APTMA House, 44-A,Lalazar,
Off: Moulvi Tamizuddin Khan Road,
Karachi -74000, Pakistan.
Phone: 0092-21-111-700-000
Fax: 0092-21-5611305
E.Mail: aptma@cyber.net.pk
Web Site: www.aptma.org.pk

Chairman All Pakistan Textile Mills Association expresses gratitude on getting generalized system of preferences status for Pakistan

Karachi, December 12, 2013 (PPI-OT): The Chairman All Pakistan Textile Mills Association (APTMA) Yasin Siddik has expressed his gratitude on getting GSP (generalized system of preferences) status by European Parliament terming it a big success for Pakistan and good omen for country’s export oriented industry.

Yasin said that EU Parliament has approved GSP Plus status for Pakistan with 406 parliamentarians expressed their support for Pakistan and the status has been granted till 2017. He said that the status will prove to be of great benefit to Pakistan’s textile manufacturers and exporters who will now have duty free access to 27 European countries.

He said that textile exports had been declining in Pakistan, as manufacturers and exporters were finding it hard to compete with Sri Lanka and Bangladesh who already had duty-free access to European markets and were getting 11.5 per cent tariff cut.

APTMA Chief has further stated that it was heartening to note that EU countries’ leaders have supported to accommodate Pakistan in the new GSP Plus initiative from January 2014 onwards. Pakistan is fortunate to be a preferred, strategic and largest economic partner of EU.

The EU’s Parliament granted approval of this facility by a majority vote. The facility will provide duty free access to 3,500 products. There was duty of 11.5 percent on Pakistani textiles, which has been abolished with effect from January 1, 2014. Pakistan can earn an additional 550-700 million dollars per year through GSP Plus status, he added.

He said that the decision by the EU was the endorsement of our demand that Pakistan needs more trade and not just aid.

The objectives of the EU’s new GSP are to focus on help to those truly in need, to strength GSP plus as an incentive, to good governance and sustainable development. Yasin expressed hope that the textile and garment units which are running under capacity will resume production at full capacity. He emphasised the need of making efforts to improve law and order so that foreign buyers should also start coming to Pakistan for export deals.

For more information, contact:
All Pakistan Textile Mills Association
APTMA House, 44-A,Lalazar,
Off: Moulvi Tamizuddin Khan Road,
Karachi -74000, Pakistan.
Phone: 0092-21-111-700-000
Fax: 0092-21-5611305
E.Mail: aptma@cyber.net.pk
Web Site: www.aptma.org.pk

Businessmen Group sweeps All Pakistan Textile Mills Association elections

Karachi, September 18, 2013 (PPI-OT): Yasin Siddik of Businessmen Group has been declared the Central Chairman of All Pakistan Textile Mills Association (APTMA) for the year 2013-14. He will take oath on 30th September. Also, the group has named S M Tanveer as Chairman APTMA Punjab for next year and Mr. Tariq Saud as Chairman Sindh and Baluchistan. Group leader Gohar Ejaz said the Businessmen Group had secured all the 24 seats in the Central Executive Committee.

The Businessmen Group has made historic win in annual elections of APTMA after securing all seats in the Central Managing Committee. Sindh-Balochistan zone, the only zone where this group faced opposition. Out of 207 votes cast countrywide, the Businessmen Group secured 137 votes.

Sohail Tabba of Businessmen Group secured highest support with 197 votes, followed by Imran Maqbool (187 votes), Zahid Mazhar (180 votes), Amman Qasim (174 votes) and Jamil Qasim (172 votes) whereas Shahid Tata cold bag only 67 votes. Tariq Saud has declared winner uncontested as the opponent had withdrawn.

For more information, contact:
All Pakistan Textile Mills Association
APTMA House, 44-A,Lalazar,
Off: Moulvi Tamizuddin Khan Road,
Karachi -74000, Pakistan.
Phone: 0092-21-111-700-000
Fax: 0092-21-5611305
E.Mail: aptma@cyber.net.pk
Web Site: www.aptma.org.pk

All Pakistan Textile Mills Association criticizes increase in Electricity Tariff

Karachi, August 01, 2013 (PPI-OT): Mr. Muhammad Yasin Siddik, Chairman, All Pakistan Textile Mills Association, Sindh Balochistan Region strongly criticizes announcement of increase in electricity prices upto 70% by the Government and urged to withdraw the rise in electricity tariff. He said that it is understandable if the tariff is raised by about 10% to 15%but not such a drastic increase of 70%.

Chairman – APTMA Sindh-Baluchistan Region said that the recent hike in electricity tariff would make textile export costlier and render Pakistani textile exports uncompetitive in the international market. Subsequently, India, China and Bangladesh would capture markets presently dominated by Pakistani exporters.

He suggested the government that before making any dramatic changes in the electricity prices, the stakeholders of the industry should have been taken into confidence and engaged to work out the electricity tariff.

He stated that the government is not in a position to provide uninterrupted power and gas supply to the industry due to which industry is facing increase in cost as a result of less than capacity output and now such a hefty tariff increase cannot be justified.

He said that since the country is passing through an era of economic uncertainty persistent inflation, high cost of doing business as a result of which industry is facing severe challenges such as war on terror and insecurity etc. such cost increases could lead to decrease in export earnings and escalating trade deficit. He feared that if the precautionary measures are not taken carefully the survival of the industry would become elusive.

For more information, contact:
All Pakistan Textile Mills Association
APTMA House, 44-A,Lalazar,
Off: Moulvi Tamizuddin Khan Road,
Karachi -74000, Pakistan.
Phone: 0092-21-111-700-000
Fax: 0092-21-5611305
E.Mail: aptma@cyber.net.pk
Web Site: www.aptma.org.pk

Increase in Sales Tax rate would lead to inflation: Yasin Siddik

Karachi, June 13, 2013 (PPI-OT): Mr. M. Yasin Siddik, Chairman – APTMA Sindh Balochistan Region while commenting on the Federal Budget 2013-14 said that no relief was announced for industry. He said that the five leading export oriented sector including textiles were required to charge 2% non refundable sales tax irrespective of sales to unregistered persons. Re-introduction of Further Tax of 2% in addition to on sales to unregistered persons through Finance Bill 2013-14 would encourage malpractice and flying invoices as the total sales tax of 4% would be an attractive amount to encourage evasion.

Commenting on Increase in sales tax rate from 16% to 17%, he said that it would increase the cost of production which would have multiple impact on prices of all commodities and would increase inflation.

Chairman – APTMA Sindh Balochistan Region said that insertion of sub-section (4) in section 21 of Sales Tax 1990, which empowers the Commissioner or any officer authorized by the Board in this behalf has reason to believe that a registered person is engaged in issuing fake/flying invoices, claiming fraudulent input tax or refund, does not physically exist, or conduct actual business, or is conducting any other fraudulent activity, such officer may after recording reason in writing, block the refund or input tax adjustment of such persons and direct the concerned Commissioner having jurisdiction for further investigation and appropriate legal action, would increase the discretionary powers of the Board. He suggested instead that there should be strict guidelines which should be followed and due diligence undertaken before issuing Sales Tax registration so that the menace of theft may be curbed.

Mr. M. Yasin Siddik while commenting on increase in Turnover Tax from 0.5% to 1% said that it would be an extra burden in case any company earning net profit of less than 3%, as the individual has to pay the tax from his own pocket.

This regime negates the provision of section 57 of ITO that allows for losses in tax year to be set off against future profits and is thus forcing the taxpayer to pay more corporate tax that would otherwise have been due, he added.

About the increase in the tax on exports from 1% to 1.5% he said this would have discouraging effect on exports.

On the other hand Chairman – APTMA Sindh Balochistan Region applauded the positive measures introduced by the Government through Finance Bill 2013-14, Mr. Yasin Siddik said that reduction of tax rate by 1% for the corporate sector, Special Economic Zone to attract Tax Holiday for 10 years instead of 5 years, auctioning of 3G License in July 2013, allowing duty free import of Solar and Wind Energy Equipments and the resolution of Circular debt within 60 days were welcome steps.

For more information, contact:
All Pakistan Textile Mills Association
APTMA House, 44-A,Lalazar,
Off: Moulvi Tamizuddin Khan Road,
Karachi -74000, Pakistan.
Phone: 0092-21-111-700-000
Fax: 0092-21-5611305
E.Mail: aptma@cyber.net.pk
Web Site: www.aptma.org.pk

Goods transporters strike at Karachi Port halts export, import activities

Karachi, December 10, 2012 (PPI-OT): The goods transport carriers strike has completely halted the export and import activities and also damaging the industrial manufacturing capacity of the country resulting in per day loss of around Rs. 3.6 billion to the foreign exchange earnings through exports of textile products only.

Mr. M. Yasin Siddik, Chairman, All Pakistan Textile Mills Association (Sindh-Balochistan Region) in a statement issued to the press said that the goods transport carriers strike which has entered into ninth day has ceased business activities as the goods are not reaching the ports due to which the country has suffered loss of exports of US Dollars 600 Million so far.

The goods transport carriers strike has not only hurt shipments of export consignments but also detrimental import business as importers are forced to pay demurrages for not being able to clear their consignments from the ports and also affecting manufacturing activity as industrial units are not receiving their raw materials and fuel to run their mills resulting in a loss of over Rs. 3.5 billion per day.

He further said if the strike is not called off without any delay the exporters will have to face huge financial losses for shipping their goods by air to fulfill their commitments or loose their hard earned export contracts.

Mr. Yasin Siddik said that our members have made international commitments and failure to perform will lead to disputes, loss of valued customers, loss of market share as well as damaging Pakistan’s reputation as a reliable supplier.

He urged upon the government to find out workable solution and play a positive role to end the strike so that the business activities should start immediately without any further loss of time and foreign exchange earning.

For more information, contact:
All Pakistan Textile Mills Association
APTMA House, 44-A,Lalazar,
Off: Moulvi Tamizuddin Khan Road,
Karachi -74000, Pakistan.
Phone: 0092-21-111-700-000
Fax: 0092-21-5611305
Email: aptma@cyber.net.pk
Web Site: www.aptma.org.pk

All Pakistan Textile Mills Association says that Pakistan would witness bumper cotton crop this year

Karachi, November 07, 2012 (PPI-OT): Chairman All Pakistan Textile Mills Association (APTMA) Ahsan Bashir has said that Pakistan would witness bumper cotton crop this year, expectedly a total of 15 million bales. He has described it as a phenomenal outcome of the Free Market policy of the government, which has also ensured record cotton prices to the farmers over the last three years.

While appreciating the government for keeping intact the free market mechanism in the larger interest of all stakeholders including growers, ginners and millers, Ahsan said APTMA has had been on the front foot for advocating free market mechanism to maximum resource transfer to the farm sector annually.

He has further added that the cotton prices in Pakistan are above the international cotton prices at present. The Industry, as a matter of fact, is being overcharged by Rs.200/Maund for Pakistan cotton whereas international cotton can easily be imported at Rs.6,000/maund on Pakistani cotton parity basis.

Pakistani spinners have therefore made agreements in the International cotton market for purchase of over one million bales during the last one week. Resultantly, he said, this may lead to surplus cotton in Pakistan at the outset of next cotton season.

For more information, contact:
All Pakistan Textile Mills Association
APTMA House, 44-A, Lalazar,
Off: Moulvi Tamizuddin Khan Road,
Karachi -74000, Pakistan.
Phone: 0092-21-111-700-000
Fax: 0092-21-5611305
Email: aptma@cyber.net.pk
Web Site: www.aptma.org.pk