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

[Lincoln]

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.


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

Not a luxury, necessity for country growth. We live in a Capitalist world, not a socialist one. If your people and industries don't grow, the country doesn't grow, get it through your thick head.

Reference this: https://defence.pk/pdf/threads/esta...tion-of-laws-regulation.625288/#post-11584717.

Black mail

Yeah man, China also black mailing then.
https://defence.pk/pdf/threads/esta...tion-of-laws-regulation.625288/#post-11584717

You know your Government policies are gone to the absolute gutter when China recommends just scrapping the whole thing and using their model.

 

[313ghazi]

Not a luxury, necessity for country growth. We live in a Capitalist world, not a socialist one. If your people and industries don't grow, the country doesn't grow, get it through your thick head.

Reference this: https://defence.pk/pdf/threads/esta...tion-of-laws-regulation.625288/#post-11584717.



Yeah man, China also black mailing then.
https://defence.pk/pdf/threads/esta...tion-of-laws-regulation.625288/#post-11584717

You know your Government policies are gone to the absolute gutter when China recommends just scrapping the whole thing and using their model.

No it is not a necessity. If it was a necessity, than over half the mills represented by the very same org would not be operating. It is clear that the majority of organisations represented by this organisation are able to be economically viable in changing economic conditions. Just because a minority can't - doesn't mean the taxpayer should pay them to stay in business. Let them declare bankruptcy, there won't be a shortage of people lining up to buy their businesses for a pittance.

 

[Arsalan 345]

Demand will go down because of price hikes but we have mafia in our business community.also government is doing everything to ruin life of average Pakistani.elites will not feel the pain.

 

[maithil]

This argument of " why the rest 200 mills are also not closing down " is very amusing. IK will achieve that as well. Give him one more year.

 

[Goku]

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%.

Its not so simple , devaluation helps only if your export base is strong enough to sustain expensive imports , certain items like fuel , medicines , chemicals , raw materials , machinery etc have to be bought irrespective of the price which will balloon import cost and impact almost everything , you cannot produce everything domestically

 

[Mr ambassador]

My suggestions to boost industrialization & employment in Pakistan:

1: impose zero export taxes and duties

2: impose zero import duties and taxes on imported manufacturing machines.

3: establish import and export watchdog in FBR for balance so that third grade and cheap imported product wont hurt Made In Pakistan products. Tax ten times or ban all those imported products that are ruing made in Pakistan products

 

[American Pakistani]

Honestly speaking, govt should focus on increasing the prices for residential consumers on any imports except medical related. Industries should be given breaks with an agreement of them doubling their exports in 2 years time.

I don't know how they are running this govt like a retard.

 

[Reddington]

There is only 1 solution for this i.e. Privatization. And this should be done ASAP.

1) Privatize all 197 loss making state owned enterprises
2) Privatize all government schools, colleges and hospitals (Government education and hospitals are garbage anyways)

Then with the money that we save, start investing and developing industries.

 

[Thorough Pro]

I would suggest government take over these "closed" mills and auction them to whoever can run them profitably.
Fucking liars

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

 

[TNT]

Why dont they instead decrease their profits. Greedy businessmen.

 

[Smoke]

They are lieing.. Blackmailing tactics to the govt

Are you stupid? Exporters CANNOT compete!!!!!!

My own clients are scratching their heads and saying they will resource.

Net margins are only between 2% - 10% at max! where do you think they will adjust 17.5% GST.

Long term we will benefit from this. The only businesses that will survive are those able to profit without hand holding. They will create a culture of sustainable businesses - not those who rely on subsidies. Why should the salaried class pay taxes to foot the bill of subsidies of businesses owned by millionaires?

Pakistani companies are archaic, inefficient, wasteful, run without merit. They don't take advantage of new business processes or tech. They just want everything on a silver platter. Let them fail - if there is a sustainable market, better versions will setup to exploit that gap.

Its about cash flows, you try doing business with 17.5% of your cash in constant government circulation.

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%.

You guys are so astonishingly stupid.
What is the price of cotton today compared to previous years?
What is the minimum wage for salaries compared to previous years?

Your logic is so flawed that it has pissed me off. We have ZERO primary material industries, we even IMPORT cotton.
We import medical equipment, DYES, FABRICS. THEY COST $$$ DOLLARS.

When USD rises, INPUT costs RISE.

Your logic only makes sense if someone (like me) is importing in USD and selling in GBP.

 

[niaz]

Just ask yourself a simple question; would you pay more for something when you could get easily similar quality item cheaper elsewhere?

The same applies to international trade. Earlier, Japan had managed to win a large market share in the automobile sector by producing reliable cars that were cheaper than the American & European manufacturers could turn out. Later China overwhelmed the world steel industry by producing cheap steel plate of good quality thereby killing off the steel industry of many countries, especially in the UK. Pakistani textile manufacturers have to compete with cheap Chinese, Taiwanese & Vietnamese origin. Bangla Desh can do it, why not Pakistani manufacturers?

The cost will rise because imported inputs become more expensive. Way to overcome increasing costs is by improving productivity. I am strongly against gov't paying subsidies to keep inefficient private concerns afloat. This way implies using Taxpayers money for lining pockets of the already rich industrialists. Let these inefficient mills close if they must.

 

[313ghazi]

Are you stupid? Exporters CANNOT compete!!!!!!

My own clients are scratching their heads and saying they will resource.

Net margins are only between 2% - 10% at max! where do you think they will adjust 17.5% GST.



Its about cash flows, you try doing business with 17.5% of your cash in constant government circulation.



You guys are so astonishingly stupid.
What is the price of cotton today compared to previous years?
What is the minimum wage for salaries compared to previous years?

Your logic is so flawed that it has pissed me off. We have ZERO primary material industries, we even IMPORT cotton.
We import medical equipment, DYES, FABRICS. THEY COST $$$ DOLLARS.

When USD rises, INPUT costs RISE.

Your logic only makes sense if someone (like me) is importing in USD and selling in GBP.

Why are we importing cotton? Or dye? Maybe Mill owners who can't afford mills should open cotton farms or factories making mills.

My point stands, if economic conditions cause your business to fail - tough. The taxpayer should not prop up anyone's business. We are a poor country we can't afford the luxury. Right now we're surviving bill to bill. You can't borrow from the IMF and then dictate your own interest rates. We can not continue to prop up a weak currency by taking out loans to buy rupees.

Come what may, and economic correction is required and hard times will come with it.

 

[nahtanbob]

No it is not a necessity. If it was a necessity, than over half the mills represented by the very same org would not be operating. It is clear that the majority of organisations represented by this organisation are able to be economically viable in changing economic conditions. Just because a minority can't - doesn't mean the taxpayer should pay them to stay in business. Let them declare bankruptcy, there won't be a shortage of people lining up to buy their businesses for a pittance.

what makes you think even the businesses are going to be sold ?
even if they are for sale you are assuming someone competent with money is ready to purchase it
you do not grow competence like you can grow a pair of balls

 

[ziaulislam]

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

This will not work..they should close mills if govt don't do timely refund but subsidy on local industry can't go unchecked ..better spend the 180 b rupees subsidies on other export oriented industry like IT minerals if textile cant do it

There is only 1 solution for this i.e. Privatization. And this should be done ASAP.

1) Privatize all 197 loss making state owned enterprises
2) Privatize all government schools, colleges and hospitals (Government education and hospitals are garbage anyways)

Then with the money that we save, start investing and developing industries.

1. Who is going to buy a lose making entity? you?
2. Why not introduce MTI act/ hospital to semi independent with producing some of the funds itself..but hey everyone wants everything free