20000312

Govt to take

steps for revival

of powerloom industry

RECORDER REPORT

FAISALABAD: The government would take appropriate measures to pull out the powerlooms industry from grave crisis and conduct an early survey for the grant of loans to this vital sector of the economy.

This was stated by the Federal Minister for Finance, Shaukat Aziz, while addressing a gathering of the powerloom workers of a factory which had completely closed down to non availability of yarn, on Samundri Road here on Saturday.

He was accompanied by Privatisation Commission Chairman Altaf M Saleem. All Pakistan Cotton Powerlooms Association (APCPA) Chairman Rana Ikhlaq Ahmad told the minister that the powerlooms sector was the biggest sector of the economy which was producing cloth for the processing units and providing livelihood to thousands of wage-earners.

He said due to faulty policies of the previous governments, the powerlooms sector is confronted with constant crisis and over 25 percent powerlooms units have been closed down while the remaining are operating partially. He demanded immediate ban over the export of yarn and disclosed that during 1998-99, the yarn export stood at 32.87 million kg per month, which have now crossed 50 million kg per month.

He said powerlooms industry is paying 18 percent sales tax, besides the payment of 15 percent sales tax on electricity and Sui gas bills. He also demanded the elimination of wealth tax, social security, old age benefit scheme and other provincial taxes. The APCPA chairman said that the powerloom industry was indeed an indirect export industry. Hence the facility of the refinancing (part 1) should also be extended to powerloom industry.