Friday, December 13 2024

Textile units may need NOC for incentives
extile units holding back payment of cotton cess may need to obtain a No Objection Certificate (NOC) from the Pakistan Central Cotton Committee (PCCC) to avail of subsidies, secure import and export permits, and take advantage of government incentives or packages. Alternatively, the amount of cess should be recovered through the Federal Board of Revenue, while the federal government could provide funds for research and development and ERE. These proposals were discussed during the PCCC’s governing body meeting on Thursday. Minister for National Food Security and Research Rana Tanveer Hussain deliberated on critical issues surrounding the cotton cess and restructuring of the PCCC to revitalise its operations. The minister expressed serious concerns over the past eight years’ delays in resolving the cess-related disputes, which have adversely impacted PCCC’s efficiency and its contributions to cotton research and development (R&D).
Related news categories: business economic-indicators textile-composite textile-spinning textile-weaving

Wednesday, December 11 2024

Discontinuing gas to captive power plants will threaten exports, warns PTEA
The Pakistan Textile Exporters Association (PTEA) has strongly condemned the government’s decision to discontinue gas supply to highly efficient captive power plants (CPPs) from Feb 1, 2025. PTEA Patron-in-Chief Khurram Mukhtar called the move a critical threat to the textile industry and a barrier to realising Pakistan’s full export potential, according to the association press release issued on Tuesday. The textile sector has billions of rupees invested in gas-based power generation systems to ensure stable and reliable energy for industrial operations. Across the country, 480 CPPs operate on the SNGPL network and 800 on the SSGC network, relying on combined heat and power (CHP) systems to maintain voltage stability and avoid damaging highly automated machinery.
Related news categories: business economic-indicators textile-composite textile-spinning textile-weaving

Tuesday, December 10 2024

APTMA warns of industry collapse
The All Pakistan Textile Mills Association (APTMA), Southern Region, has sounded the alarm over the misuse of the Export Facilitation Scheme (EFS), warning of widespread closures and mass unemployment in the domestic textile industry. In a statement issued Monday, APTMA highlighted how the scheme, which exempts imported cotton and blended yarns from sales tax and duties, is being exploited. Instead of being used solely for export manufacturing, large volumes of these imported yarns are being sold in the domestic market. This has created an uneven playing field, pushing local yarn manufacturers into financial ruin and causing the closure of over 40% of spinning mills. "Unscrupulous elements are evading taxes under the guise of exports, leading to massive revenue losses for the government and crippling the domestic industry," APTMA said. The misuse has resulted in the loss of hundreds of thousands of jobs, further compounding the industry's woes. APTMA criticised the withdrawal of zero-rating on local supplies for export manufacturing under the Finance Act 2024, calling it counterproductive. "While intended to enhance revenue, it has instead triggered a decline in business activity, further squeezing government revenue collection," the statement noted.
Related news categories: business economic-indicators textile-composite textile-spinning textile-weaving

International Cotton Association declares 84 textile mills ‘defaulters’
The International Cotton Association (ICA) has placed at least 84 Pakistani textile mills on the defaulter’s list and prohibited them from trading in the world cotton markets. The ICA website revealed on Monday that 84 Pakistani textile companies could not honour their cotton purchase agreements, and association members were asked not to enter into any deal with them. Most of these units are in Karachi and Lahore, and a few are from Faisalabad, Multan, Hyderabad and Kasur. Sources say some of these mills have closed or partially closed their operations. Some of the defaulting units are owned by leaders of the All Pakistan Textile Mills Association (Aptma) and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). They have also been part of various government setups and are enjoying and demanding certain subsidies and other facilities from the government.
Related news categories: business economic-indicators textile-composite textile-spinning textile-weaving