APTMA has constituted a task force to deliberate on reasons for alarming 16 per cent fall in textiles and clothing exports in the month of March. The task force has a strong representation of all sub-sectors including spinning, weaving, processing, home textiles, knitwear, woven garments, towels and synthetic textile. The APTMA has given mandate to the central chairman S M Tanveer along with Gohar Ejaz as co-chairman to hold deliberations on the factors behind prevailing situation and suggest ways forward in terms of viability and sustainability of the industry.
The task force would formulate a strategy document for the restoration of viability of textile industry and undertake investment initiatives for achieving double-digit growth of textile industry. The mandate of the task force encompasses immediate reduction in cost of doing business and devise a methodology for effective zero rating regime for export-oriented industry. It would also deliberate on various incidents of taxes, cess, surcharges and inefficiencies and disadvantages of the system burdening the industry at around five to six per cent of the sales value for spinning, weaving and processing mills, making basic textiles unviable for value added exports. All these three sub-sectors are important part of the value chain, energy dependent, operate 24/7 and thus are more exposed to inefficiencies of the system, he added.
The government has only two options to save the textile industry. It would either have to reduce the cost of doing business of export-oriented textile industry or bring rupee at to its realistic value.
