APTMA expresses grief over inordinate delay in TUFS notification

As the Pakistan federal government withheld the notifications of initiatives under the Textile Policy 2014-19 to avail of the terms of Technology Upgradation Fund Scheme (TUFS), the All Pakistan Textile Mills Association (Aptma) has lamented the delay, citing that it is hindering the industry from undertaking BMR and fresh investment initiatives for the textile industry.

The Aptma chairman S M Tanveer has urged the prime minister, finance minister and commerce minister to immediately take notice of the situation and issue directives for notifying the Textile Policy 2014-19, in particular the TUFS, to ensure investment for undertaking initiatives under BMR and greenfield projects.

Tanveer said that the textile industry has lacked behind the region on the front of technology and machinery upgradation. There is no meaningful addition in the sector since 2006, he added.

Only 15 percent of the previous Textile Policy 2009-14 could be implemented due to lack of funds. Moreover, refunds relating to investment markup support and Technology Upgradation Fund Scheme have not been cleared as yet. Tanveer apprehended the new scheme may also witness a similar fate in case no timely steps are taken by the government.

As a fall out, serious structural imbalances have occurred across the textile value chain, as 25 percent of the basic textile worth US$4 billion is being exported annually without converting into garments due to the non-existence of backward and forward linkages to add value up to US$15 billion exports, Tanveer said.