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

[Hex0maniac]

What the hell? Of course devaluation, gas and oil price hike, more and more taxes, are putting businesses on the edge, they have to increase their prices to account for the expenses and that makes it harder for them to compete in the International market. This is very bad news, textile is one of the most major export products. This is not blackmailing.

It was known from first day what effect this will have. Businesses will profit less, many will close down, the loans will increase many folds since revenue generation is in Rupees and payment is in USD, the buying power of people will decrease, we put a gun shot in our own leg and hurt our industry badly.

due to asset deceleration most of them are not legal. at least in khi as far as I know and yes they are blackmailing.

 

[El Sidd]

Everyone should wear the same clothes and drive the same car and eat the same food.

austerity lifestyle

 

[KhanBaba2]

You are assuming that the production cost remains same and not accounting for taxes and price hikes in industrial essentials.

If you were selling something for 1 USD or 100 PKR, you are selling the same for 1 USD or 165 PKR today.

That is 65% increase. Most of your inputs have not increased that much. Not labour, not raw material. These are your main expenses.

 

[TopCat]

Devaluation should make their product cheaper in international market.

 

[H!TchHiker]

Ya N league waly apna dosto ko bol kar mill closed kra rahay..IK ko badnam krna ka lia..otherwise business is flourishing by day and night under the best conditions provided by government..

 

[313ghazi]

Another interesting point. This organisation rerepresents over 400 textile mills. If these 200 can't cope - why are the other 200 able to survive?

https://en.wikipedia.org/wiki/All_Pakistan_Textile_Mills_Association

 

[Fawadqasim1]

No cost of production in Pakistan was already prohibitively high this was the straw that broke the camel's back.

 

[The Accountant]

What the hell they are talking about. This is the most stupid claim they are making that export orders are declining due to gas price hike. Gas price are increasing in local rupee terms but not in dollar terms. Infact in dollar terms it has decreased as dollar has appreciated by more than 50% v/s just 31% increase in gas prices.

On the other hand due to increase in dollar their revenue has increased by 50%. For example if they were selling a bed sheet for 10 dollars then they were earning around 1,000 rupees at 100 rupee exchange rate but on the same dollar price now they are earning 1,600 rupees. So if the cost of input if increase only slightly still it will be no impact on the profits.

The real issue is with the documentation of economy. Previously they were hiding profits and were putting all the money in the pocket but now with the current laws it is becoming difficult and difficult to hide the profits and thats why they are making so noises as they dont wanna pay taxes on the profits.

 

[shah_123]

If you were selling something for 1 USD or 100 PKR, you are selling the same for 1 USD or 165 PKR today.

That is 65% increase. Most of your inputs have not increased that much. Not labour, not raw material. These are your main expenses.

Qoam e Youth don't understand this.
Imran Khan govt right now, "khaya piya kuch nahi, glass tora Doa anay".

This govt is destroying economy.

 

[Lincoln]

Which budget do you suppose we cut to give subsidies to wealthy businesses?

Health? Education? Defence? Infrastructure? Maybe default on some loans?



Yeah, because we're in the same economic bracket as those countries right?

Every discussion with you brings this to mind.

You went from banana republics to "they are doing it for votes" to "they have the money."

You are an A-grade retard. Keep it up.

 

[313ghazi]

Qoam e Youth don't understand this.
Imran Khan govt right now, "khaya piya kuch nahi, glass tora Doa anay".

This govt is destroying economy.

LOL. Do you even understood what he meant? His point is exporters should be earning more under these conditions not less.

They pay the same salaries, they buy cotton in PKR, they pay for gas in PKR, yet for every item they export they get dollars back. Where 1 USD used to get them 100 pkr, they get 165 now. Once these mill owners export their products and get dollars back, they put them in the bank and get 65% more PKR. Their total costs have not gone up by more than 65%.

 

[Lincoln]

If you were selling something for 1 USD or 100 PKR, you are selling the same for 1 USD or 165 PKR today.

That is 65% increase. Most of your inputs have not increased that much. Not labour, not raw material. These are your main expenses.

Why are you assuming that the production cost will remain 80 Rs with inflation and price hikes and additional taxes?

 

[313ghazi]

You went from banana republics to "they are doing it for votes" to "they have the money."

You are an A-grade retard. Keep it up.

You're a patwari - there is no point arguing with you. You choose to be ignorant. I said straight up those countries can afford the luxury of supporting industries. We can't. The reason most of them do it is for political support. CCP might not get votes, but there would be no CCP if there were 500 million hungry Chinamen. They still have to play politics.

Your problem is probably personal, i suspect someones mill isn't running to great without taxpayers money.

Why are you assuming that the production cost will remain 80 Rs with inflation and price hikes and additional taxes?

Can you evidence cost of production has increase more than 65%?

 

[Mrc]

Black mail

 

[313ghazi]

More than 50% of mills supported by this organisation are still operating, yet these 200 are closing? Why?

Failed businesses - thats why.