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Annual Report of Pakistan Textile Process Mill

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ACTIVITIES REPORT OF APTPMA HEAD OFFICE

APTPMA Annual Report 2007-2008

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SELECTED ACTIVITIES OF “APTPMA” HEAD OFFICE
Dear Readers:
We are giving hereunder brief excerpts of APTPMA activities for the year 2007-08 from APTPMA Head Office record for your kind perusal and ready reference:

(ZAHIR IQBAL KHAWJA)
Secretary APTPMA Head Office

******** ANNUAL ELECTIONS 2007-08 (Press Release Dated 01st January 2008): As per press release dated 01st January 2008, the Central Body elections of All
Pakistan Textile Processing Mills Association (APTPMA) were announced by Mian Aftab Ahmed on behalf of Mian Shabbir Ahmed, Returning Officer for APTPMA Elections 200708. The elections were conducted as per directions and orders of the Director General Trade Organizations (DGTO) issued to all the Trade Bodies of Pakistan for the purpose. Following five (5) office-bearers were elected unopposed for the Central Body: Chairman: Mr. Muhammad Riaz Sheikh of M/s Riaz Fabrics, Lahore, Senior Vice Chairman: Mian Ajmal Farooq of M/s Noor Fatima Fabrics Faisalabad, Vice Chairman (Central) Faisalabad: Sheikh M.Amjad Javed of M/s Al-Hamra Textile Industries Faisalabad; Vice Chjairman (Central) Karachi: M.Altaf Shekhani of M/s Shekhani Industries Karachi; Vice Chairman (Central) Lahore/Gujranwala Region: Sheikh Ejaz Raza of M/s Rehman Dyeing, Gujranwala. Besides Central Body elections, the following Regional Chairmen, Regional Vice Chairmen and members Executive Committee were declared elected unopposed earlier:Regional Chairman Faislabad Region: Sheikh Nazim Shahzad of M/s Ittehad Textile Industries, Faisalabad; Regional Vice Chairman Faisalabad: Sheikh Muhammad Akram of M/s Al-Habib Dyeing Faisalabad; Regional Chairman Karachi Region: M.Anees Motiwala of M/s Motiwala Industries Karachi; Regional Vice Chairman Karachi Region: Abdul Ghaffar Essa of M/s Essatex Industries Karachi; Regional Chairman Lahore/Gujranwala Region: Sheikh Muhammad Ayub of M/s Asmy Dyeing & Printing, Lahore; Regional Vice Chairman: Lala Abdul Qayyum of M/s Shahab Dyeing & Printing, Lahore. Besides these , 18 (eighteen) members for Executive Committee were elected from the three Regions to fill the vacancies of retiring members. The names of the newly elected Executive Committee Members are being given hereunder: Faisalabad Region: 1. Sheikh Muhammad Akram (Al-Habib Dyeing), 2. Baoo Muhammad Akram (Shoaib Usman Textile), 3. Sheikh Abdul Samad (S.A.Samad & Co.), 4. Rizwan Ashraf (M.A.Textile), 5. Murtaza Nazir (Aala Processing) 6. Muhammad Kashif Tauheed Puri (National Silk & Rayon Mills)

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Karachi Region: 1. Anees Motiwala (Motiwala Industries) 2. Abdul Ghaffar Essa (Essatex) 3. Muhammad Shakeel (Oman Dyeing) 4. Muhammad Ashraf (Kausar Industries) 5. M.Qamar Ibrahim (Lucky Industries) and 6. Suleman Chawala (Pearl Embroidery) Lahore/Gujranwala Region: Muhammad Riaz Sheikh (Riaz Fabrics) 2. Sheikh Muhammad Ayub (Asmy Dyeing) 3. Lala Abdul Qayyum (Shahab Dyeing) 4. Hassan Asghar (Hassan Brothers) 5. Sheikh Ejaz Raza (Rehman Dyeing, Gujranwala) 6. Muhammad Ayub Chughtai (Ahsan Dyeing) All the office-bearers were returned un-opposed as the number of candidates did not exceed the number of seats. Haji Muhammad Riaz Sheikh, Chairman Elect, expressed sincere thanks to all the members of the Association for having elected him unopposed and assured them that he would try and prove himself worthy of the confidence reposed in him. Outgoing Chairman, Muhammad Saeed Sheikh, in his farewell speech, highlighted the activities of APTPMA for the preceding year and touched briefly upon the problems being faced by the Textile Processing Sector. Senior Vice Chairman elect, Mian Ajmal Farooq, also spoke on the occasion and paid rich tribute to the members for their cohesion and solidarity. On 03rd January 2008, we circulated copies of the minutes of the meeting of the Sub Committee on H.S. Code Claims under Research & Development (R&D Support Claims). The meeting was held in Karachi on Dec, 15, 2007, vide T.C.O.’s letter dated 19th Dec, 2007 which was chaired by the Textile Commissioner and attended by Mr. G.R.Arshad, Life Chairman Action Committee, on behalf of APTPMA. The minutes were circulated to Haji Muhammad Riaz Sheikh Chairman APTPMA, Mian Ajmal Farooq, Senior Vice Chairman APTPMA and all Regional Chairmen APTPMA, Faisalabad, Karachi and Lahore/Gujranwala Regions.

MINUTES OF R&D SUPPORT COMMITTEE:

PROPOSED MEETING OF AFD TEAM WITH CHAIRMAN APTPMA: On 09th January 2008, we wrote a letter to Mr. Riaz Ahmed Sheikh,
Regional Secretary APTPMA, Lahore, informing him that a three-member team of AgenceFrancaise de Development (AFD) intends to have a short meeting with the Chairman APTPMA in Lahore on 15th January 2008. AFD is a public specialized institution which has been sponsored by the Govt of France to commence their activities in Pakistan regarding Energy Efficiency, Renewable Energy and Green House Emission, Project Director AFD, Mrs. Qur’at-ul-Ain, has requested Chairman APTPMA for a brief meeting in Lahore on 15, January 2008. we have therefore requested Regional Secretary APTPMA Mr. Riaz Ahmed Sheikh, to coordinate the meeting.

DIFFICULTY IN PROVIDING SUMMARY OF SALES TAX RETURNS FOR SUPPLIES TO UN-REGISTERED PERSON: On 11th
January 2008, we sent a letter to all the Regional Chairmen APTPMA informing them that in response to our letter dated 24th December 2007 on the above subject we have received letter (dated 07th January 2008) from Secretary Sales Tax & FE, FBR to the effect that the issue is being taken up by FBR on priority basis. A copy of FBR’s letter is forwarded to all the Regional Chairmen APTPMA for their information and record.

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SEMINAR ON R&D BY CIPE: Centre for International Private Enterprises (CIPE) has sponsored an introductory Seminar on R & D to be held at Holiday Inn, Lahore on 31st January 2008 for the benefit of the staff members of Regional Chambers of Commerce and Trade & Industrial/Textile Associations. Worthy Chairman APTPMA has directed Regional Secretary Lahore, Sheikh Riaz Ahmed to coordinate the Seminar on behalf of APTPMA. The Seminar aims at providing introductory information about R&D to the staff members. MINUTES OF CENTRAL EXECUTIVE COMMITTEE MEETING DTD 31ST DECEMBER 2007: On 17th January 2008, copies of minutes of
APTPMA Combined (Central) Executive Meeting held in Lahore on 31st December 2007 were sent to all Office-bearers and Members of APTPMA Central Executive Committee, Life Patron-in-Chief, Life Chairman Action Committee, Chairman Ministry of Textile’s Committee on Reducing Cost of Doing Business,Chairman Finance Committee,All Regional Chairmen APTPMA,Immediate Past Chairman APTPMA and the Chairmen’s Desk.

OFFER OF QUALITY CONTROL CIRCLES CONSULTANCY: On 26th January 2008, we received a brief on Quality Control Consultancy Service from the National Productivity Organization (NPO), Govt of Pakistan, informing us that the National Productivity Organization, Ministry of of Industries, Production & Special Incentives, GoP, have launched the Quality Control Circles (QCC) in December 2007 in order to develop the Companies/Organizations of Pakistan to face the rapidly transforming global markets and combat the future scenario of global competitiveness.
In view of this explicit object, the NPO have sent us a brief on the concept of QCC along with ACC Application/Registration Form vide their letter dated 24th January 2008 (total 8-pages). This is a free consultancy service and our Members have been well advised to derive maximum benefit therefrom On 29th January 2008, we sent a full set of Form 27, 28, 29 and Form “B” to our Auditors, M/s Hyder Bhimji & Co., Faisalabad, for completion and onward submission to SECP. In our letter dated 29th January 2008, we notified a change of seat in Executive Committee Lahore which has fallen vacant due to sad demise of Lala Abdul Qayyum and been filled by his son M.Pervez Lala who has been duly elected by the Executive Committee w.e.f. 23rd January 2008. Furthermore, in compliance with DGTO’s order dated 17th September 2007, the tenure of all Office-Bearers and Executive Committee Members of existing Trade Organizations shall expire on 30th September 2008.

SECP FORMALITIES & DOCUMENTATION:

AWARENESS SEMINAR FOR CERTIFICATION IN SOCIAL ACCOUNTABILITY (S.A 8000): On 29th January 2008, we sent a letter to Rana
Muhammad Danyal, Project Director, Ministry of Commerce Islamabad that it has been learnt with immense pleasure that Ministry of Commerce intends to hold an Awareness Seminar in Lahore regarding Matching Grant for Certification in Social Accountability (SA-8000)in compliance with ILO Convention and UN Declaration which would, hopefully, enhance the export potential of Pakistan. We suggested to him to hold a short meeting with the Chairman APTPMA Mr. M.Riaz Sheikh, who is Lahore-based, subject to mutual convenience, in order to work out the modalities of the proposed Seminar.

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LETTER OF DTO & OTHER CONCERNED DIGNITARIES REGARDING ANNUAL ELECTIONS OF APTPMA: On 31sr January
2008, we sent a letter to Mr. Muhammad Ashraf, Director Trdae Organization (DTO) Ministry of Commerce, Islamabad, that, in compliance with the standing instructions from the office of DTO , we have completed the Annual Elections of APTPMA for the year 200708 and are enclosing herewith a list of our newly elected Office-Bearers and Executive Committee Members along with a copy of our Annual Report 2006-07. Copies of our Annual Report and Lists of newly elected Office-Bearers were also sent to Mr. Muhammad Anwar Ali, Special Assistant to the Prime Minister, Mr. Shahzada Alam Monnoo, Federal Minister for Commerce & Textile Industry; Mr. Tariq Ikram, Minister of State & Chairman SMEDA; Mr. Idrees Ahmed, Textile Commissioner, Mr. Tanveer Ahmed, President FPCCI; Mr. Azhar Saeed But, Zonal Chairman FPCCI; Mr. Abdullah Yousuf, Chairman FBR; Miss Musarrat Jabeen, Member Sales Tax; Presidents Regional Chambers of Commerce & Industry, Karachi, Lahore, Faisalabad, Gujranwala, Sialkot, Regional Chairmen APTPMA, Faisalabad, Karachi, and Lahore/Gujranwala and other concerned Dignitaries.

AMENDMENTS IN MEMORANDUM & ARTICLES OF APTPMA:
On 04th February 2008, we sent a letter to all the Regional Chairmen/Secretaries of APTPMA to the effect that it has been unanimously resolved during the annual general meeting of APTPMA held in Lahore on 31st December 2007, that the Annual Subscription for membership of All Pakistan Textile Processing Mills Association (APTPMA) has been enhanced from Rs.6,000/- to Rs.10,000/- per annum and that of Small Dyeing Units from Rs.3,000/- to Rs.5,000/- while the ratio of distribution of income between the Head Office and Regional Offices may be altered from 45:55 to 30:70 respectively. However, their Admission Fee shall remain the same. These amendments shall become operative w.e.f. subscription year 2008-09 and may be approved by the Ministry of Commerce/Corporate Law Authority. A copy of Resolution dated 31st December 2007 has also been enclosed therewith.

FORMULATION COMMITTEE: On

OF th SUIGAS

LOAD

MANAGEMENT

08 February 2008, Chairman APTPMA sent a letter to all the Regional Chairmen requesting them to send him the names of two members from each Region for the formulation of APTPMA’s Load Management Committee of Suigas.

AMENDMENT IN APTPMA’S MEMORANDUM & ARTICLES: On 09th February 2008, we sent a copy of our Resolution dated 31st December 2007 regarding amendment in Clause 6 of our Memorandum & Articles of Association for grant of fresh Licence submitted to the DGTO. REQUEST FOR MEETING WITH SNGPL:
In response to letter dated 12th February 2008 from Mr. Zahid Saeed, General Manager (RA) SNGPL addressed to our Immediate Past Chairman, Mr. Muhammad Saeed Sheikh, we sent yet another letter to the GM on Feb, 19, 2008 requesting for a short meeting of a small delegation of APTPMA in Lahore to redress a few pending grievances with regard to rationalization of meter reading during removal/replacement of meters etc.

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On 21st February 2008, we sent copies of the minutes of our AGM held in Avari Hotel, Lahore on 31st December 2007 to all the Regional Chairmen/Secretaries APTPMA with the request to circulate copies thereof to all the General Body members of APTPMA.

MINUTES OF APTPMA AGM:

On 25th February 2008, we sent a request letter for a short meeting of APTPMA’s delegation to discuss a number of pending issues with regard to Suigas. Some of these issues were recording of minutes of meetings, rationalization of meter reading, specific grievances of member units, especially billing complaints from our Former Chairman Mr. Shabbir Ahmed and Immediate Past Chairman, Mr. Muhammad Saeed Sheikh.

REQUEST OF MEETING WITH SNGPL:

In response to our letter dated 26th February 2008 addressed to Ms. Musarrat Jabeen, Member Sales Tax FBR, regarding a point raised by Mr. Bashir Mahmood, Former Chairman APTPMA, we received a letter from Sales Tax Collectorate Gujranwala, copy whereof was duly endorsed to Mr. Bashir Mahmood.

SALES TAX REFUND CLAIMS:

FILING OF DOCUMENTS UNDER COMPANIES ORDINANCE 1984: On 26th February 2008, we sent a set documents (Form “27”, “28”, “29” in respect of
Mr. M.Pervez Lala’s election on the Executive Committee seat in Lahore which has fallen vacant due to sad demise of his father, for onward submission to SECP.

FORMULATION OF LOAD MANAGEMENT COMMITTEE OF SNGPL: On 26th February 2008, we sent a letter to Mr. Abdul Rashid Lone, M.D.
SNGPL, informing him that we have formulated a 4-Member Load Management Committee of SNGPL for Faisalabad and Lahore Regions of APTPMA. Names of the nominees of the Committee are as under:(1) Mr. Nazim Shahzad Sheikh, Regional Chairman APTPMA, Faisalabad. (2) Mr. Shabbir Ahmed, Former Chairman APTPMA, Faisalabad. (3) Sheikh Amjad Javed, Former Member Executive Committee APTPMA, Lahore. (4) Sheikh Shahid of M/s Fazal Younas Ind., Lahore.

NOMINATION FOR FPCCI’S ZONAL COMMITTEE ON LOCAL GOVT AFFAIRS: On 06th March 2008, we sent a requisition to Sheikh Muhammad
Ayub, Regional Chairman APTPMA, Lahore for designating a few names of APTPMA members from Lahore for FPCCI’s Zonal Committee on Local Govt Affairs who should be genuinely interested in the Committee and possess good knowledge and experience about the subject. The names have been solicited by Mr. Yousaf Shah who has been nominated as Chairman of the Standing Committee on Local Govt Affairs (LDA, WASA and LMC etc) by Mr. Azhar Saeed Butt, Vice President and Zonal Chairman FPCCI.

REQUEST FOR EMERGENT MEETING WITH SNGPL:

On 08th March 2008, we sent a letter to Mr. Sarfraz A.Sheikh, Senior Executive Director (Gas) OGRA Islamabad wherein we contended that the stance taken by SNGPL regarding excessive billing was erroneous and the payment had been made by our concerned members under protest. We therefore solicited a conclusive meeting with M.D. SNGPL.

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BUDGET & TRADE POLICY SUGGESTIONS OF APTPMA FOR THE YEAR 2008-09: On 08th March 2008, we sent our Budget & Trade Policy
Suggestions for the year 2008-09 to Mr. Muhammad Riaz Sheikh, Chairman APTPMA which are meant to be tabled as a Working Paper at the preparatory meeting scheduled to be held in the Textile Commissioner’s Office in Karachi on 11th March 2008. The meeting would be attended on behalf of APTPMA by Mr. Muhammad Riaz Sheikh Chairman APTPMA, Mr. G.R.Arshad Life Chairman Action Committee APTPMA, and Mr. M.Zubair Motiwala Convener P.M.’s Standing Committee on Reducing Cost of Doing Business and Former Chairman APTPMA. Brief excerpts from our proposals and suggestions for the forthcoming Budget and Trade Policy are being given hereunder: 1. PREAMBLE: Textile Processing Sector is one of the most value-added, exportoriented, revenue-generating and labour-intensive sectors of Textile Industry in Pakistan. STATE OF THE ECONOMY: Pakistan’s economy is, by and large, single-cropbased wherein “Silver Fiber” (cotton) has virtually assumed the status of a “Lifeline”. It is high time, therefore, that the State Bank of Pakistan (SBP) may provide some special incentives to the Textile Industry, especially to the Textile Processing Sector, which are available to the Textile Industry in our neighboring countries like India, China, and Bangladesh, e.g., concessional rates of export refinancing, etc. JOINT VENTURES: Joint Ventures may be encouraged with friendly countries for the manufacture of Textile Machinery and Textile Chemicals of international standard. SHORTAGE OF INPUTS: Shortage of Essential Inputs, e.g., Electricity, Gas and Water etc may be guarded against. LAW-AND-ORDER: Presently, the law-and-order situation in Pakistan is at its lowest ebb. If it is allowed to continue indefinitely, foreign investment would come to a standstill, while existing factories would start closing down. Bold and meaningful administrative measures should be adopted expeditiously to avert the crisis.

2.

3.

4.

5.

MEETING REGARDING BUDGET PROPOSALS IN ISLAMABAD ON 13TH MARCH 2008: On 10th March 2008, Chairman APTPMA sent a letter to
Mr. Muhammad Ayub Sheikh, Regional Chairman APTPMA Lahore & Former Chairman APTPMA requesting him to attend a meeting in Islamabad on 13th March 2008 regarding Budget Proposals convened by the Ministry of Industry, and present our viewpoint on the basis of our Working paper dated 08th March 2008.

VISITORS PASSES FOR TEXTILE ASIA INTERNATIONAL EXHIBITION TO BE HELD IN KARACHI: On 12th March 2008, we received a set of Trade/Corporate Complimentary passes for "Textile Asia 2008 International Textile & Garments Machinery Show" from Messrs E-Commerce Gateway scheduled to be held in Expo Center, Karachi on 4-7 April 2008. The mega Exhibition was jointly sponsored by E-Commerce and Jamal's Yellow Pages Directory. Out of these, we sent 50 passes to

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Karachi Region, 25 to Faisalabad and 12 to Lahore/Gujranwala Region while 10 Cards were sent to the Chairman for his personal guests.

REGISTRATION AS MEMBERS OF TRADE ORGANIZATIONS UNDER NEW TRADE ORGANIZATIONS ORDINANCE (T.O.O. 2007): On 18th March 2008, we sent copies of Circular No.12(1)/2007-TOO dated 06th
March 2008 received by us from FPCCI, to all the Regional Chairmen/Secretaries of APTPMA. The Federation had received it from the office of the Director General Trade Organizations (DGTO). Ministry of Commerce, Islamabad. Rule 11(4) of the Trade Organizations Rules 2007 clearly states that the membership of a trade organization shall be granted for one year and shall expire on 31st day of March every year. Rule 11(5) of the T.O.R.2007 stipulates that the membership shall be renewable on annual basis subject to the conditions that the payment of prescribed subscription is made within the time stipulated in the Memorandum & Articles of the trade organization which shall not be later than 31st March, and that the proof of filing returns of income tax and sales tax, if applicable, for the preceding year is produced. All the Trade Bodies are therefore advised to renew their membership for the year 2008-2009 latest by 31st March 2008.

PETITION AGAINST PROPOSED ENHANCEMENT OF SUIGAS PRICES FOR INDUSTRIAL CONSUMERS: On 19th March 2008, we filed a
PETITION in response to Public Notice dated 06th March 2008 with OGRA against enhancement of gas prices to the extent of Rs.69.50 per MMBTU. Main points of our Petition are being given hereunder:

PETITION
WE THE PETITIONERS beg to submit hereunder that the stance taken by SNGPL is fallacious, ill-timed and uncalled for, as it is detrimental to the interest of the Textile Industry of Pakistan, and the National Economy at large, and pray that the SNGPL/OGRA may be precluded from enforcing the proposed enhancement. IN SUPPORT OF OUR CONTENTION, we beg to submit as under: 1. THAT it is a known fact that Pakistan’s economy is single-crop-based wherein the “Silver Fiber” has virtually assumed the status of a “lifeline” for our economy as the Textile Processing Sector is, by and large, the most value-added, export-oriented and laborintensive sector of our Textile Industry which accounts for as much as 62 percent of the total export from the country. THAT as many as 450 Textile Processing Units are engaged in dyeing, bleaching, printing and processing of Textile Fabrics, Garments and Home Textiles in the country, for whom Sui Gas has assumed the status of a basic/primary raw-material which accounts for as much as 25 to 30 percent of their total cost of production. THAT WHEREAS the Textile Processing Sector of Pakistan is responsible for providing dress and apparel to the teeming millions of consumers in the domestic market, it is also a known fact that during the rapidly transforming scenario of “Globalization”, our Exporter Members have been subjected to vast challenges of WTO by way of price-competitiveness

2.

3.

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and they are constrained to sell their products at virtually little or no profit while our Competitor Countries in the International Export Market, e.g., India, China, and Bangladesh, are providing a vast array of incentives and facilities to their exporters which our members cannot even dream of. It can therefore be very well imagined that even the slightest enhancement in our cost of production at this critical juncture would oust our exporter members from the international export arena and force us to import textile fabrics from cheaper world sources, thereby incapacitating the entire Textile Processing Sector. 4. THAT the contention which has been portrayed by SNGPL (and SSGC) from time to time, that their prices are cheaper than several other countries, is fallacious and illogical because the prices quoted by them are not co-related with the Cost of Living Index and, hence, do not reveal the true picture. THAT the plea of Gas Companies that they have been forced to revise their prices upward due to a rise in “wellhead prices” is incorrect and fallacious because Suigas is an indigenous product and there has been no appreciable increase in its wellhead prices. THAT on the basis of increase in gas prices, WAPDA would also be tempted to follow suit and enhance their prices for domestic and industrial consumers every now and then. Any such action on their part would be highly unwarranted because natural gas is an indigenous product and linking its prices with imported oil would subject the domestic and industrial consumers of electricity to untold hardship. Even the Planning Commission of Pakistan has, in the near past, opposed the enhancement of gas and electricity tariff and advised WAPDA and Gas Companies to refrain from tariff enhancement, and resort to alternative sources of revenue generation by plugging the loopholes like pilferage and line losses and attend to exploration of new gas wells. IN VIEW OF abovecited grave apprehensions, we wish to pray that SNGPL and SSGC may be advised to refrain from enhancing gas tariff for the Textile Processing Sector which would, God forbid, subject this vital sector to forced closure and deprive the Exchequer of billions of rupees by way of forex and revenue and throw thousands upon thousands of wage-earners out of their jobs which might even create an ugly situation of law-and-order. Thanking you, Sir, Yours faithfully, (MUHAMMAD RIAZ SHEIKH) Chairman APTPMA (PETITIONER)

5.

6.

7.

AMENDMENT IN APTPMA MEMORANDUM & ARTICLES AND SUBMISSION OF D/D FOR RS.50,000/-: In continuation of our letter dated
09th February 2008 addressed to the DGTO, and in response to letter dated 15th March 2008 from Mr. Naseer Ahmed, Deputy Director, DGTO, we sent a bank draft for Rs.50,000/- on 19th March 2008 to him in favour of DGTO as advised along with a copy of the Notice/Agenda for our AGM held on 31st December 2007, a copy of the list of members who attended the meeting, copy of our Working paper showing justification of the amendment circulated to our members and a copy of our existing Memorandum & Articles of Association, as required.

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On 24th March 2008, we sent a bank draft of Rs.24,000/- to the Secretary General FPCCI on account of annual subscription (Rs.20,000/-) and special subscription of Rs.4,000/-.

PAYMENT OF ANNUAL SUBSCRIPTION OF FPCCI:

On 02nd April 2008, we sent photostat of Working Paper received by us from Mr. Tariq Ikram, Minister of State/Chief Executive Trade Development Authority (TDAP) Karachi, pertaining to the analysis of exports in textiles and apparel sector (total 14 pages) for circulation to the members of our Regional Offices.

EXPORT ANALYSIS FROM TDAP:

TRAINING NEED ASSESSMENT (TNA) FOR SME YEAR 2008-09:
On 02nd April 2008, we received letter dated 28th March 2008 from Mr. Muhammad Javed Afzal, Manager Training Service Outreach Division SMEDA, Lahore (3-pages). SMEDA has launched a Training Needs "Assessment Programme for SMEs in order to assess their training needs for the year 2008-09 and solicited our feedback in accordance with their stipulated programme on or before 31st May 2008. we have therefore circulated photostatic copies of the TNA Project to all the Regional Offices and requested them to send their comments and inquiries to SMEDA office, Lahore, or revert to their website.

INVITATION TO ATTEND 5TH TEXTILE ASIA 2008, INTERNATIONAL TEXTILE & GARMENTS MACHINERY SHOW AT KARACHI ON 4-7 APRIL 2008, AS "GUEST OF HONOR": On 03rd
April 2008, Mr. Muhammad Riaz Sheikh, Chairman APTPMA, received a special invitation from M/s E-Commerce Gateway Pakistan (Pvt) Ltd., Karachi to attend their Textile Garment and Machinery Show on 4-7 April 2008 as "Guest of Honor". The aforesaid Textile Machinery & Garment Show is a mega-Event which is jointly sponsored by Messrs Ecommerce Gateway Pakistan (Pvt) ltd., and M/s Jamal Yellow pages. As Mr. Riaz Sheikh was not available for attending this Show on short notice due to other pressing preoccupations, he designated Mr. G.R.Arshad, Former Chairman APTPMA to attend the Show as Chief Guest.

05TH MEETING OF MONITORING-CUM-FACILITATION COMMITTEE OF R&D SUPPORT FOR TEXTILE INDUSTRY: On
03RD April 2008, we sent a letter to Mr. G.R.Arshad informing him that the 05th meeting of the "Monitoring-cum-Facilitation Committee for Research & Development Support to Textile Industry" is scheduled to be held in the Textile Commissioner's Office Karachi on 16th April 2008 which he has tentatively agreed to attend on behalf of APTPMA. As directed by Chairman APTPMA, we also sent him a copy of the Agenda and Working Paper of the meeting.

EXTENSION OF DATE OF RENEWAL OF MEMBERSHIP OF TRADE ORGANIZATIONS UNDER T.O.R 2007: On 03rd April 2008,
Chairman APTPMA sent a copy of letter dated 31st March 2008 on the above subject from Secretary General FPCCI to all the Regional Chairman of APTPMA wherein he informed us that the D.G.T.O. has extended the date of renewal of membership from 31st March 2008 to 30th April 2008 as a special case and that no further extension shall be granted.

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April 2008, we sent a copy of letter dated 07th April 2008 from Mr. Sajjad Haider Bhatti, Director Trade Organizations, Islamabad to our Regional Chairmen to the effect that the amendments proposed by us in our Memorandum & Articles of Association which were resolved in our AGM on 31st December 2007 had been duly approved by the Director General of Trade Organizations.

APPROVAL OF OUR AMENDMENTS: On 09th

STUDY OF TEXTILE INDUSTRY ON PERSPECTIVE PLAN: Ministry of Textile Industry has embarked upon a Survey of Textile Industry in order to prepare a perspective plan. They have requested us to send them the names and addresses of our member units who are desirous of getting their mills to be surveyed in order to earmark the impediments in the growth of Textile Industry. On 14th April 2008, we sent a list of our member units to the Deputy Director concerned as desired.
On 17th April 2008, we sent a statement of Corporate Information with regard to APTPMA's registration with the MINTEX in connection with our registration for renewal of Licence with the DGTO as per prescribed Format.

REQUEST FOR CORPORATE INFORMATION:

VISIT BY PAKISTAN SOFTWARE EXPORT BOARD (PSEB) TO APTPMA UNITS IN KARACHI FOR PROVIDIGN FINAL VERSION OF ERP: On 18th April 2008, Mr. Muhammad Riaz Sheikh, Chairman APTPMA sent a letter to Mr. Anees Motiwala, Regional Chairman APTPMA, Karachi, to inform him that the Pakistan Software Export Board (PSEB) have agreed to develop an ERP Solution for APTPMA Units in Karachi for the automation of process and procedure in Human Resource and Pay Roll, Accounts, Inventory, Production and Sales modules. The development of ERP Software was completed in October 2006, while the software was initially deployed in 15 APTPMA units participating in the Project.

AMENDMENTS IN MEMORANDUM & ARTICLES OF APTPMA: In response to letter dated 07th April 2008 from Mr. Sajjad Haider Bhatti, Director Trade Organizations, Directorate General of Trade Organizations, Ministry of Commerce, Islamabad, on the abovecited caption, we sent him three (3) copies of our Memorandum & Articles fo Association which had been submitted by us to the D.G.T.O.s office on 30th June 2007 along with our application for grant of fresh licence and wherein we had incorporated requisite amendments in our Articles No.7, 8(a), 10(a), 23(d), and 42(ii) which had been approved by the Directorate General vide their letter dated 07th April 2008, as required by the DTO.

PETITION AGAINST PROPOSED ENHANCEMENT OF SUIGAS PRICES FOR INDUSTRIAL CONSUMERS: On 16th April 2008, under instructions from Mr. Muhammad Riaz Sheikh, Chairman APTPMA we sent a copy of notification of public hearing from Registrar Oil & Gas Regulatory Authority (OGRA) to Regional Chairmen/Secretaries of APTPMA Faisalabad and Lahore/Gujranwala Regions wherein it had been notified that the next date of public hearing has been fixed on 22nd April 2008 at Pearl Continental Hotel, Lahore. Worthy Chairman requested the Regional Chairmen to make it convenient to attend this crucial meeting.

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CORPORATE INFORMATION TO FPCCI:

In response to letter dated 03rd April 2008, from Mr. M.A.Lodhi, Secretary General FPCCI, we sent him requisite corporate information about APTPMA as per prescribed format on 17th April 2008.

POSTPONEMENT OF R&D SUPPORT MONITORING-CUMFACILITATION COMMITTEE MEETING: Upon receipt of telephonic information from Mr. G.R.Arshad, who had been designated to attend the meeting of R&D Support Facilitation Committee scheduled to be held in Karachi on 16th April 2008, we have sent a letter to Regional Chairmen/Secretaries APTPMA informing them that the meeting has been postponed. He has requested them to attend the next meeting and to send their data to APTPMA Head Office.

MEETING FOR CLUSTER MAPPING OF ANALYSIS REQUIREMENTS FOR CONSTRUCTION OF ETPS: On April 21, 2008,
Chairman APTPMA sent a copy of letter dated 21st April 2008 from the Ministry of Textile Industry to all the Regional Chairmen APTPMA informing them that the Ministry is planning to analyze the requirements of Effluent Treatment Plants emission and treatment of liquid, semi-liquid and solid waste generated by different sectors of Textile Industry for which the Ministry has earmarked feasible areas for the construction of individual and Combined Effluent Treatment Plants and other environment-friendly alternatives for all industries including Textile and Clothing. The Ministry has already drafted ToRs for the study and would require feasible inputs from all the Stake-Holders before giving final shape to the Project, for which a meeting has been summoned by it in Islamabad on 23rd April 2008. Chairman APTPMA has therefore requested all Regional Chairmen to attend this meeting. He has also directed APTPMA Head Office to send a copy of the ToRs (23-pages) to all the Regional Chairmen.

EMERGENT MEETING REGARDING PROBLEMS FACED BY OUR MEMBER UNITS PERTAINING TO SNGPL: In response to our letter dated 02nd April 2008, we received a letter on 22nd April 2008, from Mr. Zahid Saeed, General Manager (RA) SNGPL, wherein he informed us that a meeting had been scheduled to be held in Lahore on 29th April 2008, in the office of Mr. Imdad Hussain, Senior General Manager (CS), SNGPL Lahore . The meeting was attended by Mr. Muhammad Riaz Sheikh, Chairman APTPMA, Mr. Muhammad Saeed Sheikh, Immediate Past Chairman APTPMA and Mr. Shabbir Ahmed, Former Chairman APTPMA, wherein certain specific cases of excessive/erroneous billing were sorted out.

PETITION AGAINST PROPOSED ENHANCEMENT OF SUIGAS PRICES FOR INDUSTRIAL CONSUMERS BY SNGPL: On 24th April
2008, we sent a letter to Registrar OGRA, Islamabad wherein we drew his attention to our submission made by Mr. Shabbir Ahmed, Chairman Standing Committee APTPMA for Gas & Electricity during the public hearing on 22nd April 2008 at PC Hotel, Lahore, wherein the Stake-Holders were informed that the Wellhead prices are fixed/controlled by the Federal Govt. but in the relevant ordinance, it has been clearly stipulated that OGRA shall "determine the well-head prices for the producers of natural gas in accordance with the relevant agreements or contracts, and notify the same in the official Gazette".

APTPMA Annual Report 2007-2008

12

We therefore requested the Registrar to provide us copies of the relevant agreements on contracts on the basis of which OGRA has determined the well-head prices.

59TH MEETING OF THE ADVISORY COUNCIL OF THE MINISTRY OF COMMERCE: The 59th meeting of the Advisory Council of the
Ministry of Commerce on Trade Policy proposals for 2008-09 was held in Islamabad on 28th April 2008 in the Auditorium of "P" Block, Pak Secretariat under the Chairmanship of Mr. Shahid Khaqan Abbasi, Federal Minister of Commerce. The meeting was attended on behalf of APTPMA by Mr. G.R.Arshad, former Chairman APTPMA.

PRE-BUDGET SEMINAR IN COLLABORATION WITH FPCCI:
Revenue Division Govt of Pakistan organized a Pre-Budget Seminar on 12th May 2008 in collaboration with FPCCI at National Library Auditorium, Islamabad, wherein Mr. Muhammad Ishaq Dar, Federal Minister for Finance, Revenue, Economic Affairs & Statistics was the Chief Guest, while the other prominent participants included Mr. Abdullah Yousuf, Chairman/Secretary General FBR, Mr. Tanweer Ahmed Sheikh, President FPCCI, Mr. Tariq Saeed Butt, President SAARC CCI, Regional Chairmen and senior members of APTPMA. An urgent meeting was held on 10 May 2008 in Karachi in order to review and resolve the current shortage of Caustic Soda in the country. The meeting was convened by the Textile Commissioner in the committee room of Textile Commissioner's Organization which was attended on behalf of APTPMA by Mr. Anees Motiwala, Regional Chairman Karachi, along with a contingent of senior members from Karachi. th URGENT MEETING RGDG SHORTAGE OF CAUSTIC SODA:

CORPORATE INFORMATION ABOUT APTPMA:

On 10th May 2008, we submitted a set of corporate information about APTPMA on prescribed format to Acting Secretary General FPCCI Karachi which was requisitioned by the Federation. On 14th May 2008, we submitted a list of our three elected Office-Bearers and top three (3) Manufacturers/Exporters to Mr. Adnan Younis Lodhi, Section Officer (Tex) Islamabad, as desired.

LIST OF TOP THREE MANUFACTURERS:

SHORT MEETING WITH MR.ABDULLAH YOUSUF: In response to our letter dated 19th May 2008, we had a short meeting with Mr. Abdullah Yousuf, Chairman FBR, in Islamabad on 23rd May 2008 about crucial policy matters in his office. APTPMA delegation who called on the Chairman FBR included Mr. Muhammad Riaz Sheikh Chairman APTPMA, Mr. M.Zubair Motiwala, Former Chairman APTPMA and Mr. Shabbir Ahmed, Former Chairman APTPMA.

RATIONALIZATION OF L/C MARGIN ON IMPORT: On 03rd June 2008, we sent a copy of letter dated 31st May 2008 received from our member unit, M/s Ihsan Sons (Pvt) Ltd., Lahore on the above subject to Mr. M.Zubair Motiwala with the request to take it up with the Governor State bank of Pakistan and Chairman FBR on merit. The stance taken by the learned member is that the rate of import duty @ 35% in case of BMR and import of raw-material for export is far too high. This rate, in all fairness, should either be

APTPMA Annual Report 2007-2008

13

zero-rated , or drastically reduced to a bare minimum as it is adversely affecting our national export drive.

RECONSTITUTION OF THE STEERING COMMITTEE ON TEXTILE: On 04th June 2008, we received a copy of letter dated 03rd June 2008 from
Chaudhary Ramzan Ali, Section Office (P-II) stipulating that the Steering Committee on Textile is being reconstituted and that the first meeting of the Committee is going to be convened under the Chairmanship of Ch. Ahmed Mukhtar, Federal Minster for Textile Industry on Monday 09th June 2008 in the Committee Room of the ministry of Textile industry, FBC Building, Islamabad. Under instructions from Chairman APTPMA we sent a copy of Mr. Ramzan Ali's letter along with agenda of the meeting and ToR of the Steering Committee and requested him to attend the meeting on 09th June.

PERSPECTIVE PLAN FOR PAKISTAN TEXTILE & CLOTHING INDUSTRY 2008-13: Vide APTPMA letter dated 10th June 2008, Chairman
APTPMA, Mr. Muhammad Riaz Sheikh, requested Mr. Ayub Sheikh, Regional Chairman APTPMA, and Mr. Pervez Lala, Regional Vice Chairman, to attend the abovecited meeting in Lahore on 12th June 2008.

REFORMATION OF MEMORANDUM & ARTICLES OF APTPMA AS PER TRADE ORGANIZATIONS ORDINANCE RULES 2007: On
11th June 2008, we sent a letter to our Auditors M/s Hyder Bhimji & Co., Faisalabad, informing them that the rules in our Memorandum & Articles of Association, as amended by APTPMA have been duly approved by DGTO for enhancing the annual subscription form Rs.6,000/- to Rs.10,000/- as per our AGM held on 31st December 207, as per copy (in original) enclosed, for submission to the office of SECP for their approval and record.

VERIFICATION OF M/S ITIM SYSTEM'S ERP PROJECT REPORT: On 13th June 2008, we received a copy of letter dated 06th May 2008 for endorsement from Mr. Shahzad Basir, Project Manager Pakistan Software Export Board (PSEB) Islamabad which was duly forwarded by APTPMA Head Office to Mr. Muhammad Riaz Sheikh, Chairman APTPMA, Lahore. M/s ITIM Systems have deployed the latest software at the nominated units. Requisite training was also provided to these units while 14 out of 15 units have provided their acceptance certificates.

NOTIFICATION: SALES TAX & FEDERAL EXCISE AMNESTY FROM PAYMENT OF ADDITIONAL SURCHARGE AND PENALTIES UNDER SRO # 511(1)2008 DATED 05TH JUNE 2008: On
17th June 2008, we sent a copy of abovecited SRO/Notification to all the Regional Chairmen/Secretaries as per instruction from Chairman APTPMA, informing them that the Federal Govt has been pleased to exempt the whole of default surcharge and penalties payable by a person against whom an amount of sales tax or federal excise duty is outstanding on account of any audit objection/observation or who has failed to pay an amount of sales tax, or federal excise duty, or claimed inadmissible input tax adjustment or refund or drawback due to any reason, subject to the condition that the outstanding principal amount of sales tax or federal excise duty is pad by 30th June 2008. However, the subject amnesty scheme does not apply to cases of fraudulent refunds or drawback and other tax frauds.

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REQUEST FOR EMERGENT MEETING WITH PRIME MINISTER OF PAKISTAN: On 19th June 2008, we sent a request letter to Syed Yousaf Raza
Gillani, Prime Minister of Pakistan requesting him to permit a representative delegation of APTPMA, which is one of the most value-added, export-oriented, and revenue-generating sectors of Textile Industry in Pakistan, to call on him for a short meeting at his earliest convenience. It was further stated in the request letter that, due to unprecedented crises, as many as 20 percent of our member units had been constrained to close down, while the remaining units are on the verge of closure and ruination. Some of the most conspicuous factors which are likely to erode our National Economy in the Post-Budget Scenario are a sharp decline in textile exports in terms of quantum and tariff proceeds, virtual devaluation of Pak currency, high cost of raw-materials, sharp decline in labour productivity, Energy Crisis, Govt and Social Compliance, and the like. A similar request letter was sent by us to Mr. Naveed Qamar, Federal Minister for Finance, Revenue, Economic Affairs & Statistics on 19th June 2008.Yet another such request letter was addressed to Mr. Abdullah Yousuf, Chairman FBR.

BREAK-UP OF PRODUCTION-CUM-SUPPY OF CAUSTIC SODA TO TEXTILE SECTOR: In response to letter dated 20th June 2008 on the above subject, we sent another letter to Mr. Muhammad Khalid, Advisor Marketing & Commercial & Deputy General Manager Sitara Chemicals Industries, Faisalabad, requesting him to provide us the percentage of supply of Caustic Soda Flakes and Liquid to the Textile Industry in the country viz-a-viz their total production.

GRANT OF FRESH LICENCE TO ALL PAKISTAN TEXTILE PROCESSING MILLS ASSOCIATION: On 25th June 2008, we sent a letter to all the members of TOO/TOR 2007 Implementation Sub Committee APTPMA, Life Patron-in-Chief APTPMA, Life Chairman Action Committee APTPMA, all former Chairmen all Central Office-Bearers and all Regional Chairmen, informing them that the Ministry of Commerce, Govt of Pakistan has been pleased to grant a Licence to All Pakistan Textile Processing Mills Association as a Trade Organization under Section 3(2)(d) of the Trade Organizations Ordinance 2007 which has been received from Mr. Sajjad Haider Bhatti, Director (TO), Directorate General of Trade Organizations Islamabad, copies whereof have been duly enclosed. It would not be out of place to mention here that this arduous task has been accomplished by us mainly due to concerted endeavors of Mr. Muhammad Saeed Sheikh, Immediate Past Chairman and Chairman of the T.O.O/T.O.R Implementation Committee, all the members of the Committee comprising Sheikh Muhammad Ayub, Mr. Shabbir Ahmed, Mian Aftab Ahmed, Mr. M.Nisar Shekhani, Mr. Abdul Wahab Lakhani, and Mr. Bashir Mahmood and to the able guidance and dynamic leadership of Mr. Muhammad Riaz Sheikh, Chairman APTPMA, and Senior Members and Office-Bearers of the Association, besides the efforts of APTPMA Head Office staff.

PAKISTAN'S STANCE ON WTO NEGOTIATIONS ON NONAGRICULTURE MARKET ACCESS (NAMA): On 04th July 2008, we received a write-up from the Director General RDA Cell, Ministry of Textile Industry wherein he had solicited the views and comments from 12 different textile-based organizations of Pakistan for tariff reduction of Non-Agriculture Market Access. But no

APTPMA Annual Report 2007-2008

15

response to that effect has been received by him so far from any organization. So he has sent a reminder to all the concerned organizations as follow up whereupon we sent a copy of the write up to all the Regional Offices of APTPMA.

PROBLEMS BEING FACED BY THE TEXTILE PROCESSING SECTOR IN THE POST-BUDGET SCENARIO: Our letter dated 21st June
2008, addressed to Syed Yousuf Raza Gilani, Prime Minister of Pakistan was forwarded to the Textile Commissioner who advised us to forward our main problems to him. Accordingly, we sent a detailed letter to Deputy Director Textile Commissioner's Organization on 07th July 2008, wherein we enunciated the following problems in depth and detail: (1) Increase in prices of gas and electricity (2) Delay in dispensation of R&D support facility, (3) Dispensation of income tax incentives package to Pakistani textile exporters on the pattern of India and Bangladesh, (4) Curtailment of Withholding Tax on export proceeds. (5) Restoration of Sub Section 153 (1A) of income Tax ordinance. (6) Refund of Electricity Bills has been disallowed through insertion of new section 235-4, hence this anomaly may be removed. (7) Procedure of allowing Input Sales Tax may be rationalized in accordance with our stipulation. (8) Import duty on Textile Dyes and Chemicals may be rationalized and brought at par with other chemicals. Notice of Conference from OGRA, scheduled to be held on 21 July 2008 at Pearl Continental Hotel, Lahore, has been received by APTPMA Head Office on 08th July 2008. Under instructions from Chairman APTPMA, therefore, we have requested Regional Chairmen APTPMA Faisalabad, and Lahore/Gujranwala and Mr. Shabbir Ahmed, Former Chairman APTPMA, and Mian Ajmal Farooq, Senior Vice Chairman APTPMA to attend the proposed Conference as per given schedule. st NOTICE OF CONFERENCE FROM "OGRA":

PRESS RELEASE RGDG ENHANCEMENT OF PRICES OF GAS & ELECTRICITY AND EMERGENT CALL FOR STRIKE: On July 12,
2008, Mr. Muhammad Riaz Sheikh, Chairman APTPMA, issued a press release wherein he expressed grave concern over the sharp increase in the prices of Gas and Electricity. He reiterated that a sharp increase of 31% in the prices of gas and 16% in electricity are likely to cripple and incapacitate the Textile Processing Industry. In view of this grave apprehension, he appealed to all the Textile Processing Units to go on protest strike for an indefinite period w.e.f. 13th July 2008.

CONSOLIDATED MONTHLY REPORTS OF R&D SUPPORT CLAIMS: Monthly Reports (w.e.f. July 2007 to June 2008) of R&D Support Claims of our member units received from Regional Offices, Faisalabad, Karachi and Lahore have been consolidated and forwarded to the Ministry of Textile Industry, Textile Commissioner and SBP accordingly.

PRESS RELEASE: GRAVE CONCERN OVER ENHANCEMENT OF GAS PRICES FOR CAPTIVE POWER PLANTS: On July 14, 2008, Mr.
G.R.Arshad, Former Chairman APTPMA, issued a press release expressing grave concern over sharp increase in gas prices for Power Plants. He contended that gas Tariff for Captive Plants has been enhanced by as much as 68%, while that of General Industrial Consumers by 31%. He reiterated that Captive Power Plants were installed by private entrepreneurs.

APTPMA Annual Report 2007-2008

16

WITHDRAWAL OF STRIKE NOTICE:

In response to our strike notice on compassionate ground and our press projection against enhancement of prices of electricity and gas, PM Syed Yousuf Raza Gilani called an emergent meeting of all the concerned sectors of Textile Industry in Lahore on 15th July 2008, to address the grievance of the Stake-Holders. The meeting was chaired by the Worthy Prime Minister himself and attended, among others, by the Federal Minister of Textile industry, Chaudhary Ahmed Mukhtar. On behalf of APTPMA, the meeting was attended by Mr. Muhammad Riaz Sheikh, Mr. Muhammad Ayub Sheikh, Mian Shabbir Ahmed, Mr. Nazim Shahzad Sheikh, and Mian Aftab Ahmed. It is indeed gratifying to note that the Worthy Prime Minister Syed Yousuf Raza Gilani and Federal Minister for Textile Industry Chaudhary Ahmed Mukhtar gave a patient and sympathetic hearing to our demands and invited all the StakeHolders for a follow-up meeting at 06.00 P.M. on July 17, 2008, In Islamabad in the office of the Federal Minister of Textile Industry.

In view of these positive developments, Chairman APTPMA sent a letter on 15th July 2008, to all the Regional Chairman requesting them to call off the strike and attend the meeting in Islamabad on 17th July.

SNGPL-MOTION FOR REVIEW UNDER RULE 16 OF THE NATURAL GAS TARIFF RULES FOR DETERMINATION OF ESTIMATED REVENUE REQUIREMENTS FOR F.Y.2008-09: Mr.
M.Riaz Sheikh, Chairman APTPMA, sent a letter to Registrar OGRA Islamabad on 21st July 2008, in response to his letter dated 07th July 2008 wherein he solicited our comments/observations on Distribution Development wherein we offered the following comments/observations: (i) (ii) Construction cost of CFO to the tune of Rs.8747 million has been over-budgeted. As per stipulated criteria, it should not exceed 50% of the material cost. In the Annual Report 2006-07, an amount of Rs.11.00 billion has been shown as W.I.P. which clearly denotes that Govt grants have been used to create assets entitled to earn 17.5% rate of return. Position of W.I.P. needs complete investigation. Deduction of Rs.561 million from revenue requirements needs independent verification and justification. Contract with Interstate Gas System (Pvt) Ltd., appears to have been done to avoid legal implications of Company Ordinance. Agreement should be made public and shown to consumers. Appeal covers expenditure to be incurred in 2008-09. Expenditure on land during 2007-08, however, cannot be claimed in 2008-09. Budget on repair and maintenance is always based on actual expenditure incurred during the previous year. On the basis of track record, the deduction made is justified and clear. With regard to sponsorship of university chair, we noted in our comments chart the name of the university should be disclosed and no contribution should be made to public universities which are highly expensive. Traveling expenses appear to be excessive. Rates should be disclosed to consumers. As regards Advertisement, we opined that as SNGPL is holding a monopoly in the distribution of gas bills, it is a wasteful expenditure and should not be allowed as it is an unnecessary burden on the pocket of the consumers.

(iii) (iv)

(v) (vi)

(vii)

(viii) (ix)

APTPMA Annual Report 2007-2008

17

(x) (xi)

Salary structure of SNGPL is very expensive and lavish. It should be curtailed and exposed to consumers. Concluding, we suggested that he Society should form a Committee consisting representatives, consumers and chambers to look into the affairs of SNGPL.

OBTAINING DIGITAL SIGNATURES: E-SERVICES USER IDENTIFICATION AND PASSWORD: On July 17, 2008, we sent a letter on the above subject to the Director (MIS), SECP, Islamabad, for obtaining Digital Signature Certificate.

STUDY ON TEXTILE INDUSTRY FOR PERSPECTIVE PLAN: In continuation of our letter dated 04th July 2008, we sent a copy of 39-pages revised Questionnaire to all the Regional Offices of APTPMA on 28th July 2008. PRESS RELEASE: GRAVE CONCERN OVER ENHANCEMENT OF GAS PRICES FOR CAPTIVE POWER PLANTS: On July 14, 2008, Mr.
G.R. Arshad, Former Chairman APTPMA, issued a press release expressing grave concern over sharp increase in gas prices for Power Plants. He contended that Gas Tariff for Captive power Plants has been enhanced by as much as 68%, while that of General Industrial Consumers by 31%. He reiterated that captive Power plants were installed by private entrepreneur. In response to our strike notice on compassionate ground and our press projection against enhancement of prices of electricity and gas, PM Syed Yousuf Raza Gilani called an emergent meeting of all the concerned sectors of Textile Industry in Lahore on 15th July 2008, to address the grievance of the Stake-Holders. The meeting was chaired by the Worthy Prime Minister himself and attended, among others, by the Federal Minister of Textile Industry, Chaudhary Ahmed Mukhtar. On behalf of APTPMA, the meeting was attended by Mr. Muhammad Riaz Sheikh, Mr. Muhammad Ayub Sheikh, Mian Shabbir Ahmed, Mr. Nazim Shahzad Sheikh and Mian Aftab Ahmed. It is indeed gratifying to note that the Worthy Prime Minister Syed Yousuf Raa Gilani and Federal Minister for Textile Industry Ch: Ahmed Mukhtar gave a patient and sympathetic hearing to our demands and invited all the Stake-Holders for a follow-up meeting at 06.00 p.m. on 17th July 2008, in Islamabad in the office of the Federal Minister of Textile Industry. In view of these positive developments, Chairman APTPMA sent a letter on 15th July 2008, to all the Regional Chairmen requesting them to call off the strike and attend the meeting in Islamabad on 17th July.

WITHDRAWAL OF STRIKE NOTICE:

SNGPL MOTION FOR REVIEW UNDER RULE 16 OF THE NATURAL GAS TARIFF RULES FOR DETERMINATION OF ESTIMATED REVENUE REQUIREMENTS FOR F.Y.2008-09: Mr. M.
Riaz Sheikh, Chairman APTPMA, sent a letter to Registrar OGRA Islamabad on 21st July 2008, in response to his letter dated 07th July 2008 wherein he solicited our comments/observation on Distribution Development wherein we offered the following comments/observations:

APTPMA Annual Report 2007-2008

18

DISTRIBUTION DEVELOPMENT: Expenditure of Rs.8747 million has been over budgeted. SRO # 1/2006 dated 18-.07.2006 stipulates criteria for pipe laying cost. The construction cost should not exceed 50% of the material cost. It appears that the construction cost as advised by CFO vide letter No.FTP/TAR 08-09 POI8-8 for budgeting distribution development expenditure 2008-09 is as under:
PIPE DIA 1 2 4 6 MATERIAL COST PER METER Rs.212 Rs.441 Rs.1091 Rs.1602 CONSTRUCTION COST PER METER 320 471 800 1112 TOTAL 530 912 1891 2714 % 153 106 81 69

Above position denotes that construction cost above 50% of material cost has been over budgeted and accordingly it should be reduced as it shows 100% over budgeting. IAS-20 very clearly describes that government grants cannot be used to give its benefit to the shareholders. SNGPL received about Rs.15 billion after 2003. In the annual report of 2006-2007 amount of Rs.11 billion has been shown as W.I.P. It clearly denotes that government grants have been used to create assets entitled to earn 17.5% rate of return and assets against government grants have not been created. Position of W.I.P needs complete investigation. Deduction of Rs.561 million from the revenue requirements is not justified, since the record evidently proves that amount of grant is apprehended to have been misused. Checking in depth will definitely cause increase in deduction. It needs independent verification and investigation.

INTER-STATE GAS SYSTEMS (PVT) LTD: Deduction of interstate expenses from revenue requirements is justified, Contract with interstate for rendering services is limited to paper work only and done to avoid legal implication of company ordinance.
Interstate gas does not have capabilities to render services to SNGPL. Agreement should be made public and shown to consumers. It is a condition of license that all controls should have been transparent and made available for consumer checking.

LAND: Appeal covers expenditure to be incurred in 2008-09 and deduction has been rightly made. Expenditure incurred in 2007-2008 cannot be claimed in 2008-09.

REPAIR AND MAINTENANCE: Budgeting is always based on the actual expenditure incurred in the previous year. On the basis of track record deduction made is justified and clear.

SPONSORSHIP OF UNIVERSITY CHAIR: Name of the universities should be disclosed. No contribution should be made to private universities expensive and working for earnings. which are highly

APTPMA Annual Report 2007-2008

19

TRAVELING EXPENSES: Traveling expenses appear to be excessive. Rates should be disclosed to consumers for information and comments.

ADVERTISEMENT: SNGPL is holding monopoly business status for distribution of gas bills sent every month to consumers which should be used for educating of consumers. It is wasteful expenditure and should not be allowed as it is an unnecessary burden on the pocket of consumers.
Salary structure of SNGPL is very expensive and lavish. It should be exposed to consumers. Basic salaries of senior general manager as on 01.07.06 and 30.06.08 should be exposed to consumers. Salaries of staff are regularly revised after every two years giving substantial increase and transferring undue burden on the pocket of consumers. Concluding, we suggest that the Authority should form a committee consisting of representatives, consumers and chambers to look into affairs of Sui Northern and to submit report as early as possible. In continuation of our letter dated 04 July 2008, we sent to a copy of 39 pages revised Questionnaire to all the Regional Offices of APTPMA on 28th July 2008. th STUDY ON TEXTILE INDUSTRY FOR PERSPECTIVE PLAN:

SUGGESTIONS FOR 10TH EXTENDED MEETING OF MANAGING COMMITTEE MEETING OF FPCCI SCHEDULED TO BE HELD IN ISLAMABAD ON 07TH AUGUST 2008: On August 5, 2008, we sent our detailed suggestions to Mr. M.A.Lodhi, Secretary General FPCCI for inclusion in the agenda of FPCCI's Mega-Meeting scheduled to be held in Islamabad on 07th August 2008. the agenda tabled by us therein included the following points:

I:

As you are aware, Textile Processing Sector is catering for the domestic and export requirements of more than 60 percent of the Textile Industry. It is a known fact that as much as 62 percent of our cost of production is based upon Gas and Electricity. But as ill luck would have it, consequential to the enactment of the Federal Budget 2008, as much as 31 percent increase in Gas prices beside 68% for Captive Power Plants and an enhancement of 16% in Electricity prices, has been promulgated with effect from 01st July 2008 which has virtually crippled the Textile Processing Sector and brought it on the verge of complete collapse and closure. No wonder then if the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has sought withdrawal of the recent increase in Gas and Electricity prices to provide the much needed relief to the Industrial and Domestic Consumers. It is also a known fact that gas and electricity are the essential and basic raw-material for the Textile Processing Sector and even the slightest increase in their prices at this critical juncture would spell doom and disaster, and oust this export-oriented sector from the International Export Arena and deprive the National Exchequer of valuable forex and revenue to the tune of billions of rupees besides throwing thousands upon thousands of wage-earners out of their jobs and creating a law-and-order episode. In view of these grave apprehensions, it is imperative that the enhancement in gas and electricity prices for the Textile Export Sector through budgetary enactment is withdrawn forthwith.

INCREASE IN PRICES OF GAS & ELECTRICITY:

APTPMA Annual Report 2007-2008

20

Besides rationalizing the input cost of the export oriented Textile Processing Sector, there are quite a few corrective/administrative measures in the Textile Sector which need to be adopted through the forthcoming budgetary exercise. Some of these measures are being enumerated hereunder:

II:

R & D SUPPORT FACILITY: Through its circular No.FEOD/ 20679/R&DS-103-08 dated 23.06.2008 the State Bank of Pakistan fixed 25th June 2008 as the cut off date for receiving all R&D support claims from textile exporters stating that claims received after this date will not be paid. It is a fact that R&D support claims are submitted only after realization of export proceeds and as such R&D claims for export shipments made in April till June 2008 where export proceeds realized after 30.06.2008 will be deprived of this support. The exporters have taken this support into account while negotiating prices with their foreign customers and depriving them of this support will be unjust and unfair and a big blow to such exporters. It is therefore suggested that State Bank of Pakistan may please be instructed by Government to pay R&D support on all shipments made upto 30.06.2008, and thereafter, as per previous practice. INCOME TAX Special Incentives: Although Textile Processing Sector is the top-most value-addition sector of Textile Industry in Pakistan, it is regretfully noted that exporters of our Competitor Countries, e.g., India, Bangladesh, Sri Lanka and China etc., are being provided all sorts of concessions, subsidies and incentives, while no such incentives are being provided to Pakistani Textile Exporters. It would therefore only be in the fitness of things if a suitable Incentives Package is provided to the Pakistani Textile Exporters in consultation with the different Exporters Associations on the pattern of Bangladesh etc. The relief thus provided would more than offset the subsidy so provided as the Textile Exporters tend to operate on a bare minimum profit. Withholding Tax: The rate of Withholding Tax on export proceeds had all along been ranging from 0.75% to 1.5% of the proceeds. But it has now been fixed at 1% on all types of exports irrespective of value-addition. Resultantly, the export of textile made-ups and engineering goods too has been equated with raw-cotton, which has no value-addition. In order to encourage the export of processed fabrics and garments/made-ups, we would suggest that the rate of withholding tax on all items should be made 0.75%.

III:
(i)

(ii)

(iii)

Section 153(1A):

Section 153(1A) of Income Tax Ordinance has been omitted. Consequently, income tax withheld on payments made to persons for rendering such services as printing, washing, sizing, stitching, embroidery etc should be made chargeable under normal law. It is suggested that sub section 153(1A) should be restored.

(iv)

Refund of Electricity Bills: A new section 235(4) has been inserted which provides that income tax collected on electricity bills shall be treated
21

APTPMA Annual Report 2007-2008

as minimum tax of a person (other than company). Accordingly, refund on electricity bills is disallowed. This anomaly should be removed. (v) The Corporate Tax rate has been fixed at 35% for the year 2007 onward. This rate is far too high, and should be reduced. The rate of withholding tax on dividends has been fixed @ 10%. This rate may be rationalized and reduced further. Electronic filing of returns and withholding statements for corporate taxpayer has been made mandatory. This should be made optional for one year due to operational difficulties.

(vi)

(vii)

IV:
(i)

SALES TAX: Input Sales Tax in excess of 90% of the Output Tax for a tax period should be allowed only if:
Registered persons whose accounts are audited upon furnishing a statement along with annual audited accounts, duly certified by the auditors, is showing value additions less than the prescribed limit or In other cases, subject to the conditions and restrictions as may be specified by the Board in the Gazette. The adjustment of input tax in excess of 90% should be made on yearly basis in the second month following the end of the financial year of the registered persons. Through amendment in section 10 of Sales Tax Act it is proposed that refund within 45 days of the claim may be allowed if the refund claim is on account of zero rated local supplies or export sales. Through a proposed amendment in section 24 of Sales Tax Act the retention period of sales tax documents may be increased to five years from the existing three years period. Sales tax leviable on advance payments received by registered persons may be abolished. Apart from existing registration threshold of supplies of Rs.5 million per annum a new parameter may be added i.e. if the manufacturers have utility bills of more than Rs.600,000/- per annum they should have to get registration.

(ii) (iii)

(iv)

(v)

(vi) (vii)

V:

DUTY ON DYES & CHEMICALS: Import duty on all types of Textile Dyes & Chemicals for the Textile Sector may please be rationalized.

PRESENTATION TO FEDERAL MINISTER WAPDA FOR EXEMPTION FROM LOAD-SHEDDING: On 21st August 2008, we sent a petition to Raja Pervez Ashraf, Federal Minister for Water & Power on the above subject under the direction of Mr. Muhammad Riaz Sheikh, Chairman APTPMA. We pleaded that whereas it has been affirmed by the Govt in unequivocal terms that, in view of its valueadded and export potential, Textile Industry would be exempt from load-shedding. It is, however, regretfully pointed out that textile processing units are being subjected to scheduled and unscheduled load-shedding which has virtually crippled the Textile Processing Sector, very much to the detriment of the National Economy. Textile Processing is a continuous and non-stop operation and if expeditious measures are not adopted to absolve it of unbridled and unabated load-shedding, the affectee units shall be constrained

APTPMA Annual Report 2007-2008

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to close down which would throw millions of wage-earners out of jobs who would be forced to come out on roads in protest which would create an ugly law-and-order situation. It is a known fact that textile processing is a continuous process operation and closure of these units in mid-term operation, even for short spells, tends to damage our unfinished cloth, costly chemicals and valuable machinery irreparably. In view of these grave apprehensions, we fervently appealed to the Honorable Minister to absolve the Textile Processing Sector of scheduled and un-scheduled load-shedding. On 29th August 2008, we forwarded a copy of Pakistan Yarn Merchants Association's letter dated 12th July 2008 on the above subject to our Regional Chairmen for their comments. PYMA's contention is that according to current tariff, the import duty, on H.S.Code 5403 Viscose Yar Untwisted is 7% while the H.S.Code of 5403.3200, two ply is 5% which is a clear case of fiscal anomaly. This anomaly should, is all fairness, be removed forthwith.

ANOMALY IN FEDERAL BUDGET 2008-09:

On 29 August 2008, Mr. Muhammad Riaz Sheikh, Chairman APTPMA sent a letter to all the Regional Chairmen/Secretaries of APTPMA informing them that the Research & Development Advisory Cell of Ministry of Textile Industry is undertaking a study on Skill Development in Textile & Clothing Sector of Pakistan. You are therefore advised to provide requisite information and statistics to them, while in case you have any difficulty in providing these details, you may contact Mr. Arsalan Ghani, Director Technology, Productivity & Skill Development, Ministry of Textile Industry, R & D and Advisory Cell, House No.627, Street # 95, Sector I-8/4, Islamabad (Phone 051-9235618). th SKILL DEVELOPMENT IN TEXTILE & CLOTHING SECTOR:

PRESS RELEASE: CAUSTIC SODA: On 06th September 2008, Mr. Muhammad
Riaz Sheikh and Mr. M.Iqbal Arbi, Former Chairman APTPMA, issued a joint press release whereby they expressed grave concern over the unilateral enhancement in the price of caustic soda produced by the local manufacturers and deemed it to have been prompted by the motives of profiteering and extortion due to the element of monopoly and cartels, in gross contravention of the universally acclaimed norms of justice, equity and fairplay. Elaborating, they reiterated that Caustic Soda Products which, besides importation from world sources, are being manufactured in Pakistan by two local manufacturers in Faisalabad and Kala Shah Kaku. These products have assumed the status of basic raw material for the value-added and export-oriented sector of Textile Processing Industry. The local manufacturers of caustic soda have, however, increased the price of their Caustic Soda Flakes from Rs.36,848/- to 42,326/- per metric ton while the prospect of enhancement in the prices of Caustic Soda Liquid and Solid too cannot be ruled out. There is no denying the fact that this enhancement is being made by the Local Manufactures for no justified reason whatsoever, and has been promoted simply through profiteering and monopolization. Concluding, APTPMA Chiefs cautioned that if this unilateral enhancement is allowed to continue unabated, it would render our products uncompetitive in the international export market and as many as 400 textile processing units operative in the country shall be constrained to close down which would throw thousands upon thousands of wage-earners out of their jobs who would be forced to come out on roads in protest. It would also deprive the Exchequer of valuable forex and revenue to the tune of billions of rupees, very much to the detriment of our National Economy.

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In view of these grave apprehensions, the APTPMA Chiefs fervently appealed to Mian Muhammad Adrees, Chairman Caustic Soda Manufacturers Association (CSMA) to refrain from enhancement in the prices of Caustic Soda Products and restore their prices to the previous level. They also appealed to the Federal Ministers of Finance and Textile Industry to intervene in the matter and restore normalcy.

CURTAILMENT OF GAS SUPPLY UNDER ATA: On September 16, 2008 Acting Chairman APTPMA, Mr. Ajmal Farooq Mian sent a letter to Mr. Abdul Rashedd Lone, managing Director SNGPL, informing him that due to alleged Annual Turn Around (ATA) of Qadirabad and Sawan Gas Fields ,which is an annual feature, SNGPL may have to curtail/disconnect the gas supply of some of our member units. This contention, he said, is fallacious as alleged ATA is not a regular annual feature. Textile Processing being one of the longest gas consuming industrial sectors who need gas supply on regular and non-stop basis, curtailment of gas supply for them, even for short spells, would be disastrous for the Textile Processing Sector and the National Economy at large. The decision for curtailment/disconnection may therefore be withdrawn. CONDONATION OF TIME-BARRED CASES OF R&D SUPPORT:
On September 16, 2008 we sent a statement of time-barred cases of R&D Support to Mr. Khalid Mansoor, Section Officer (P-1), Ministry of Textile Industry, Islamabad for condonation.

WITHHOLDING TAX EXEMPTION FOR TEXTILE PROCESSING UNITS: On September 17, 2008 Mr. Ajmal Farooq Mian, Acting Chairman APTPMA, sent a letter to the Chairman Federal Board of Revenue (FBR) stating that in view of the sales tax zero-rating regime, Textile Processing Industry should be exempted from the levy of 10% withholding tax on electricity bills.

ABSOLVING TEXTILE PROCESSING SECTOR SCHEDULED AND UNSCHEDULED LOAD-SHEDDING:

FROM

In further continuation of our letter dated 21st August 2008, on the above subject addressed to Raja Pervez Ashraf, Federal Minister for Water & Power, Acting Chairman APTPMA, Mr. Ajmal Faroq Mian, sent another letter to the Federal Minister. He reiterated that textile processing is a continuous and non-stop operation. If this operation is disrupted, even for short spells due to load-shedding, it tends to damage our raw-material (grey cloth and chemicals) and valuable machinery plant worth billions of rupees and deprive the Exchequer of billions of rupees by way of forex and revenue. But, as ill luck would have it, the textile processing units are constrained to keep their factories closed time and time again due to load-shedding. In view of this predicament, the Chairman fervently appealed to the Hon'ble Minister to absolve the value-added and export-oriented Textile Processing Sector of scheduled and unscheduled load-shedding, in the wider interest of National Economy.

EXEMPTION OF WITHHOLDING TAX ON ELECTRICITY BILLS:
On October 11, 2008, we sent a MOST URGENT letter to all the Regional Chairmen of APTPMA wherein we informed them that FBR has issued a fresh notification under S.R.O. 1055 on 10th October 2008 whereby the provisions of Sec 235 shall not be applicable to the taxpayers who fall under zero-rated regime of sales tax and are registered with sales tax as exporters/manufactures of Textile and articles thereof.

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REQUEST FOR MEETING WITH SNGPL: On October 21, 2008, we sent a letter to the Registrar OGRA wherein we reiterated that Textile Processing is one of the most value-added and export-oriented sectors of Textile Industry who require gas supply on regular and non-stop basis. But it has been noted with grave concern that gas supply to some of our member units is being withheld on the pretence of annual turn-around (ATA) of Qadirabad and Swan Gas Fields. If gas supply for Textile Processing Units is withheld, even for short spells, it would cast devastating repercussions on the National Economy. In view of these grave apprehensions, we sent a number of protest letters and requests for meeting to M.D.SNPL and other senior officials, but to no avail. In view of the abovecited predicament we requested the Registrar to intervene in the matter and get the Processing Sector absolved of undue and discriminatory forced closures. PARTICIPATION OF APTPMA CONTINGENT IN FPCCI MEGA MEETING: In response to a recent ad published in a section of the national press that
Acting President FPCCI intends to hold a mega meeting with all Presidents of Chambers of Commerce & Industry and Chairman of Associations of Trade & Industry of Pakistan on 23rd October 2008, in order to address the vital issues impeding the progress of Commercial Sector, we sent a letter on 21st October 2008 to Mr. Muhammad Farooq Dadabhoy, Acting President FPCCI wherein we lauded the decision and deemed it a right step in the right direction. We informed him that Acting Chairman APTPMA, Mr. Ajmal Farooq, would participate in the mega meeting along with Mr. G.R.Arshad, Mr. Zubair Motiwala and Regional Office-Bearers.

REQUEST FOR COPIES OF PETITIONS FILED BY SNGPL & SSGCL FOR ENHANCEMENT OF TARIFF: On October 22, 2008, we sent a letter to the Registrar OGRA, Islamabad, requesting him to send us copies of petitions filed with OGRA for enhancement of tariff by SNGPL and SSGCL w.e.f. 01st December 2008.

PRESS RELEASE: INCOMPETENCE OF KESC: After attending a high level meeting of the General Body meeting of KESC on 23rd October 2008 in Karachi wherein Mr. M.A.Rauf Siddiqui, Provincial Minister for Commerce, Industry & Communication, Sindh was the Guest of Honor, Mr. Ajmal Farooq, Acting Chairman APTPMA, issued a press release wherein he reiterated that, hopefully, no further enhancement would be made by KESC in its current tariff, nor would any disconnection order (D.C.O's) be issued for non payment. PARTICIPATION OF APTPMA IN FPCCI MEETING:
On October 21, 2008, Mr. Ajmal Farooq Mian, Acting Chairman APTPMA designated a small contingent of APTPMA for taking part in FPCCI Mega Meeting to be held in Karachi on 23rd October 2008 comprising Mr. M.Zubair Motiwala and Mr. G.R.Arshad who tabled a few motion about Electricity and Gas Tariff, Oil Prices, Un-employment, Bank Rates of Mark-up and Law-and-Order.

RECOMMENDATION FOR ISSUANCE OF INDIAN VISA FOR OUR DELEGATION: On November 3, 2008, we sent a request letter to Mr. Tanveer
A.Sheikh, President FPCCI Karachi, requesting him for issuance of visa recommendation letter in favor of our Delegation who intend to visit INDIA-ITME Bangalore from 15th to 22nd November 2008, may be allowed to visit New Delhi and Mumbai. The delegation is

APTPMA Annual Report 2007-2008

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going to be led by Mr. Muhammad Saeed Sheikh, Immediate Past Chairman APTPMA and Chief Executive M/s Rashid Textile Printing Industries, Faisalabad.

REPORT ABOUT STATUS OF TEXTILE PROCESSING SECTOR FOR PRESENTATION TO FEDERAL CABINET: Upon the requisition of the Director Research & Development, Ministry of Textile Industry, on 07th November 2008 we sent him a Report on the Status of Textile Processing Sector which is meant for presentation to the Federal Cabinet on priority basis. Salient features of our Report constitute the following:

1.

INTRODUCTORY: As many as 450 Textile Processing Units are operative in the major cities of Pakistan under the aegis of our three Regional Offices (Faisalabad, Karachi and Lahore/Gujranwala) which are engaged in dyeing, bleaching, printing and processing of textile fabrics of all sorts which accounts for as much as sixty percent (60%) of our export and domestic consumption. ENHANCEMENT IN COST OF PRODUCTION, DURING LAST YEAR: Our cost of production (Processing Cost/Charges) during the fiscal year 2007-08 has escalated by almost forty percent (40%) which has rendered our products uncompetitive in the International Export Market, and unviable in the domestic market. Whereas there is a common misconception that SPINNING alone is TEXTILE, the fact of the matter, however, is that Textile consists of four sectors, i.e., SPINNING, WEAVING/KNITTING, DYEING/PRINTING and GARMENT/ APPAREL. Yet another thing which ought to be clarified is that the LOGO "Made in Pakistan" can only be applied for export of textile if it passes through the process of "Dyeing" and "Printing". The other crucial factor in the process of dyeing and printing is that of "Steam", our major raw-material, which is produced through Gas.

2.

3.

CLOSED UNITS: Nearly twenty percent (20%) of Textile Processing Units have been constrained to close down due to unfavorable conditions while the remaining units are on the verge of closure and collapse. CAUSES OF CLOSURE: Main causes for forced closure of Textile
Processing Units are being given hereunder: Sharp increase in the prices of Gas and Electricity which have assumed the status of a basic raw-material for us. Incentive packages provided to the textile sector in our competitor countries, e.g., India, China and Bangladesh etc.

4.
(i) (ii)

5.
(i)

CURATIVE MEASURES:
Tariff of Gas and Electricity ought to be revised downward. In view of the ongoing fiscal crises, we had suggested quite a few pragmatic measures to the Govt for curtailing the tariff. Our Former Chairman, Mr. M.Zubair Motiwala, had recently given a series of presentations to the the Ministry of Finance, PEPCO, OGRA and NEPRA, besides the Secretary, Ministry of Petroleum & N.R. No wonder then if notices were issued thereafter to Qadirabad and Kanderwari Gas Fields, for arriving at an amicable settlement of tariff based on Wellhead Prices.

APTPMA Annual Report 2007-2008

26

(ii)

Similar suggestions with respect to Gas Development Surcharge (GDS), Excise Duty and Fixed Return on assets of SSGCL and SNGPL have been provided by us. A Similar exercise for Electricity Tariff was launched by Mr. M.Zubair Motiwala, during the recent meeting of the Parliamentary Committee on Power Tariff, wherein he suggested a number of ways and means for averting the enhancement of power tariff as we firmly believe that the recent tariff enhancement is not only avoidable but can be revised downward as compared with the previous tariff. Cost of gas and electricity may be subsidized for the value-added export-oriented textile sector. Indiscriminate import of textile products may be restricted to curb smuggling. Sophisticated Textile Machinery and Chemicals may be manufactured in Pakistan in collaboration with friendly countries like China etc. Trade Development Authority (TDAP) or the defunct EPB may be revitalized, and at least one nominee of our Association may be included in TDAP.

(iii)

(iv) (v) (vi) (vii)

MEETING WITH GOVERNOR SBP: An emergent meeting of all the Chambers of Commerce & Industry and Exporters Associations of Pakistan was convened by Dr. Shamshad Akhtar, Governor SBP on 13th November 2008 to discuss the financing issues under SBP Refinance Scheme. On behalf of APTPMA the meeting was attended by Mr. G.R.Arshad, Mr. M.Zubair Motiwala, Mr. Ajmal Farooq mian, Mr. M.Iqbal Arbi and Mr. Anees Motiwala.

MEETING WITH OGRA: Mr. Shabbir Ahmed, Former Chairman APTPMA, was authorized to sing/present our complaint and sign any relative documents pertaining to SNGPL/OGRA's hearing on 13th November 2008.

OBSERVATIONS OF APTPMA VIZ-A-VIZ REVIEW PETITION FILED BY SNGPL REGARDING ESTIMATED REVENUE REQUIREMENTS F.Y.: On November 12, 2008, we sent a detailed letter to the
Registrar OGRA wherein we pleaded that the stance taken by SNGPL in its appeal for enhancement of gas prices to the extent of rs.97.62 per MMBTU w.e.f. 01st December 2008 on the pretense of enhancement of well-head prices to the extent of Rs.97.62 per MMBTU w.e.f. 1st December 2008 is fallacious, itll-timed and uncalled for and detrimental to the interest of the textile industry of Pakistan. We observe that according to section 6 of Oil & Gas regulatory Authority Ordinance it appears that determination of well-head gas prices is relevant for the purpose of any specific enhancement or revision in terms of Section 8(2), a licensee shall submit for the review of the Authority its total revenue requirements after incorporating the actual changes in the well-head prices as notified by the Authority. We further argued that, in terms of natural Gas Tariff Rules 2002, an option to file a petition before the Authority is provided which petition is required to be filed for determination, modification or revision of rates of return. Under Section 4, the mode of filing the Petition has to be followed before any such petition is admitted and adjucated upon. Rule 4(3) appears to be relevant, and is reproduced as follows: Rule 4(3) Every licensee shall file a Petition with the Registrar, along with the fees specified in Schedule II, to enable the Authority to review the total revenue requirement of the

APTPMA Annual Report 2007-2008

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licensee for that financial year, after incorporating actual changes in the well-head prices and other relevant factors, and to determine the licensee's revised total revenue requirement for that financial year for the purposes of informing the Federal Government pursuant to these rules. Rule 4(4) A Petition filed under sub rules (1), (2) and (3) shall… Rule 4(4)(b) save in the case of a project, be accompanied with a comparative table of the existing charges and tariff design and the proposed charges and tariff design, based on the categories of consumers likely to be affected by the proposal along with the consumption patterns of such consumers; In case the Petition does not fulfill the requirements of Rules, a separate procedure has been provided within section 4 which envisages return of the Petition with the direction to re-file the same within the specified period of time. It is provided therein that the Authority shall not reject the Petition on the grounds of any defect therein without giving the Petitioner an opportunity of rectifying the defect within the time specified. PRAYER The well-head prices of the following Gas Fields have not been notified in the official Gazette notification: 1. Badin Compression 2. Mazarani, 3. Missakiswal, 4. Mari, 5. Qadirpur 6. Salsabil The price of "Mari Gas Field" had been notified on 01st July 2007 at Rs.55.94 and the Cost taken in the said Petition of SSGCL is also Rs.55.94. The price of "Qadirpur Gas Field" had been notified on 01st July 2007 at Rs.161.02. The Cost taken in the said Petition of SNGPL is Rs.305.93 for the period of 01st July 2008 and Rs.406.76 for the period of 01st January 2009. It is therefore prayed that the Petition by the SNGPL dated 20th October 2008 to review the estimated revenue requirement for F.Y.2008-09 may kindly be dismissed in view of the above noted fact and observations.

DOMAIN REGISTRARION FOR APTPMA’S WEBSITE AND CHANGE OF E-MAIL ADDRESS: On 20th November 2008 we informed all members through Regional Offices that in order to fulfill the requirement of Rule 27 of the Trade Organizations Rules 2007, APTPMA's website has been registered as www.aptpma.com.pk and the Website is under preparation. Furthermore, our e-mail has been changed as under: New E-mail address:
Old E-mail address:

aptpma@aptpma.com.pk pktexpro@fsd.paknet.com.pk APTPMA Annual Report 2007-2008

28

PRESS RLELEASE: PRICES OF TEXTILE DYES & CHEMICALS:
On 21ST November 2008 Senior Vice Chairman APTPMA issued a press release wherein he appealed to the Government to make the prices of locally manufactured Textile Dyes & Chemicals commensurate with the prices of oil as per international market. Senior Vice Chairman APTPMA, Mian Ajmal Farooq, contended that whereas the prices of oil in the international market which is the basic raw-material of Textile Dyes & Chemicals, have sharply receded from $ 150 to $ 50.00 per barrel during the preceding three or four months, a reasonable benefit of this sharp decline should, in all fairness, be passed on to the consumers of Textile Dyes & Chemicals especially to Textile Processing Units as they are major consumers of Textile dyeing & Chemicals.

REVIEW PETITION FOR RATIONALIZATION OF SUIGAS PRICES BY SNGPL & SSGCL: After participating in the public hearing of the
Oil & gas regulatory Authority in Islamabad on 13th November 2008, which was attended by Mr. Shabbir Ahmed, former Chairman APTPMA and authorized representative for OGRA/SNGPL on behalf of APTPMA, he sent a letter to the Registrar OGRA on 25th November 2008, against the stance taken by OGRA wherein we contended that as per decision of the Authority dated 20th November 2008, the Authority finds that quote "the
Authority finds that, on the basis of currently available information, the revised projections of sale and purchase volume submitted by the petitioner are reasonable. Some interveners have stated that the average calorific value by the petitioner, of 948 per MMCF is not correct. The Authority has examined the matter and finds that after adjusting the gas shrinkage at JJVL plant at Jamshoro, the average calorific value of the petitioner comes to 950 per MMCF, the petitioner has computed its volume projections accordingly. However, inadvertently on the tariff calculation sheet (table No.C-1 of the petition) 948 per MMCF is incorrectly mentioned. It is for this reason that the suspicion of adoption of nation-wide average calorific value of 948 per MMCF arose, which, in any case, is not factually correct" unquote. We still feel that our contention is right according to the following facts. As per table C-8 pertaining to review petition filed by SSGCL dated 27.10.2008.

SSGCL
MMCF
436,274 It shows that calorific value comes to 9638. According to table C-9 it state that the gas sold is 402150 MMCF. As per the same chart, the gas consumed as LPG plant (JJVL) is 4336 MMCF. It is clear from the chart that the gas consumed for internal use is taken into account as per volume/MMCF basis. The calorific value does not decline by the consumption of volume. It is therefore, prayed that the calorific value should be taken at 9638 and not 948 as per C-1 of the petition.

MMBTU
420,511

*******

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ALL PAKISTAN TEXTILE PROCESSING MILLS ASSOCIATION

FINANCIAL STATEMNTS & AUDITOR’S REPORT
FOR TE YEAR ENDED JUNE 30, 2008

APTPMA Annual Report 2007-2008

30

ACTIVITIES REPORT OF APTPMA REGIONAL OFFICE KARACHI REGION

APTPMA Annual Report 2007-2008

41

ACTIVITIES REPORT OF KARACHI REGION
It is my honour to present the Annual Report of the All Pakistan Textile Processing Mills Association (Karachi Region) for the year 2007/08, on behalf of the Executive Committee.

Anees Motiwala Regional Chairman
(1) ADMINISTRATION
The following Office Bearers and Executive Committee members of the Association took over the charge on 1st January 2008. Mr. Anees Motiwala Regional Chairman Mr. Abdul Ghaffar Essa Regional Vice Chairman Mr. M. Altaf Shekhani Vice Chairman (C) Mr. Abdullah Rafi EC Member Mr. Shoaib Majeed EC Member Mr. M. Iqbal Lakhany EC Member Mr. M. Aslam Moten E.C. Member Mr. Ammir Zia E.C. Member Mr. M. Qamar Ibrahim E.C. Member Mr. M. Suleman Chawla E.C. Member Mr. M. Shakil E.C. Member Mr. M. Ashraf E.C. Member Regional Chairman, Mr. Anees Motiwala assisted by Mr. Abdul Ghaffar Essa, V. Chairman & other senior members of the Association supervised and controlled the administration as Chief Executive of the Association. The Vice Chairman made valued contribution as Chairman Sub-Committee of R&D of the Association. The Vice Chairman looked after the matters relating to accounts of the Association

2.

EXECUTIVE COMMITTEE MEETINGS 2007-2008

The Executive Committee, during the period under review, held three regional meetings. The working of the present Executive Committee was marked by complete coherence, rational and positive approach towards all the issues that were placed on the agenda. The participation of the members was quite encouraging. Many important issues came under the consideration of Executive Committee during the year, some of these are; Caustic Soda, Income Tax & Sales Tax, Electricity tariff, Trade Policy, visit of Association delegation to India, approval of Audit reports, problems faced due to customs and sales tax refunds, law and order, Problems of PTCL, Problems of SSGC and many other problems and appropriate action was taken to resolve many of these problems. A brief resume of the activates and performance under the various heads of administration is given below: -

3.

CORRESPONDENCE

The position of the receipt and dispatch of letters, circulars, Press Releases, Fax and E-mails have been as under during the current year. • Letters Received:

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42

• Local • Foreign • Letters Dispatched: • Local • Foreign • Circulars • Press Releases • Fax: • Fax Incoming • Fax Outgoing • E-mail: • E-mail out going • E-mail Incoming

: :

2436 6

: : : :

4200 0 135 13

: :

1200 3700

: :

3832 3180

4.

MEMBERSHIP

The Membership Sub-Committee, which is one of the significant sub-committee of the Association, worked under the able guidance of its Chairman Mr. Sikander Imran a senior member of the Association. The committee has made its utmost effort to improve the working of the membership department and to make it more efficient and supportive to the members of the Association. The prime function of the sub-committee is the scrutiny of the new applications. The break-up of Association’ membership as on 31st October, 2008 is as under: Members (2007-08) New members (2008-09) Total members : : : 200 22 ------222

5.

VISA RECOMMENDATION

The Association continued to issue the recommendation letters to Foreign Missions for issuance of business visas to our members and/or their official representatives. Similarly some of our members required recommendations from the Association addressed to Pakistan missions aboard to invite foreign nationals to visit Pakistan for business or technical assistance. The number of Visa Recommendation letters issued this year was 243

6.

R & D Certificate & Certificate of Origin

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43

The Association continued to issue the R & D Certificates & Certificates of origin to the Exporter Members of the Association and providing information of foreign missions needed by them from time to time. The following table will show the performance and volume of work during the year

Certificate
R & D Certificate Certificate of origin

Year 2006-07
71,530/-

Year 2008-09
406,400/19,300/-

7.

Caustic Soda

The Association provide the facility of issuing letters of recommendation for Caustic Soda and Soda Ash to the members. During the year we took up the matter of supply of Caustic Soda & Soda Ash to our members with the Ministry of Textile & manufacturers Caustic Soda as well as Soda Ash. For some period the demand and supply position was quite comfortable but at a later stage members faced shortage of supply of Caustic Soda and Soda Ash long waiting periods. There has also been a continuous increase in prices by the manufacturers, resulting in high cost of production of our members and affecting their exports also. The following is the detail of the recommendation issued during the year

2006-07
22,550/-

2007-08
112950/-

8.

MEETING WITH MD SSGCL ON 13th FEB. 08 AT SSGCL’ HEAD OFFICE, KARACHI

A delegation of All Pakistan Textile Processing Mills Association led by Mr. Anees Motiwala, Regional Chairman-APTPMA met Mr. Azim Iqbal Siddiqui, Managing Director Sui Southern Gas Company Limited (SSGCL) at his office. The MD welcomed the delegation and appreciated the efforts of APTPMA for the benefit of its members. Points for discussion for meeting with MD are as under; (i) COMPLAINT OF LOW GAS PRESSURE AND RECTIFICATION THEREOF: Members have complained of supply of gas at low pressure rendering some machines inoperative and thereby resulting in loss of production. Members further complained that the SSGCL complaint center is not as responsive as it used to be and the complaints remain unattended for a considerable time. The net result of such complacency is that members have had to tolerate this malady for days at a time. Due to low pressure of Gas, the main boiler had to be closed down, resulting in the closure of total unit. When gas pressure returns to normal after few hours, the boilers are restarted but it again takes few hours to regain its required temp. to be supplied to the dept for smooth running. So lot of hours are wasted even after normalization of gas pressure resulting in loss of revenue.

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(ii)

SUPPLY OF NATURAL GAS FOR CAPTIVE POWER PLANTS: The recent rains in Karachi have exposed the inability of the instruments and installations of KESC to withstand the shortcomings of the management to cope with the situation. The result was that Karachi Industries were without electric power for 7 to 10 days (or more) in sharp contrast to the uninterrupted supply of gas round the year. The power interruptions have been a major source of losses, both domestic as well as national. The only solution for removing this chronic disease is to install a selfgeneration Unit. REQUIREMENT OF LARGE GAS METER ROOM: The cost of land in Industrial area has attained an astronomical proportion, thereby forcing the industries to resort to vertical expansion. Under such circumstances, the demand of SSGCL to provide a meter room as large as a drawing room of an apartment building is neither realistic nor justified. RESRVES, DEPLETION AND ALTERNATIVE SUPPLY OF GAS: The gas reserves of the country are fast depleting and the estimates earlier made that we had sufficient reserves to last up to the first quarter of this century stand falsified. Now there is hectic activity to procure natural gas from all available resources. There is a talk import of gas through LNG as also through the gas pipe line from Iran, which, if the negotiation run a smooth and successful course, will be available by the end of 2012. Report also suggest that 300bcf will be available by 2008 from a new gas field.

(iii)

(iv)

(v)

THEFT OF GAS: We are aware of the scourge of theft of gas through illegal connections by unscrupulous elements has also penetrated SSGCL to the detriment of the genuine consumers. We are also aware that the company, besides its security personnel, has other measures in place to detect theft. It is categorically stated on behalf of all members of our Association we neither condone nor support such nefarious activity.

(vi) 1.

MISCELLANEOUS: Minimum Monthly bills: Minimum monthly bills should be according to the size of the connection and not uniform for all consumers. Insertion of Sales Tax Registration Number: some of our members have complained of facing great difficulty in getting the numbers inserted. Please get the system streamlined. Small and medium Enterprises / small industries consuming small amount of gas are subjected to minimum charges as a result of their productivity cost increases and it becomes difficult for small industries to compete the market. In view of the above it is requested / suggested that billing should be made on the basis of actual consumption of Sui Gas by the small industries with minimum use.

2.

3.

4. 5.

New Connection. M/s. Fazal Omer Ind. /Sare Textile/ Jamal Textile SITE, Karachi Rising Tariff a) To discuss correcting factors in calculating billings when meter is out of order. b) Security deposits be kept at rates of Gas as on 31.12.2007 for regular customers c) To maintain a system to check meters at least by every 2nd month

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d) Customers be informed of the Gas reading on the day it is noted. DISCUSSIONS; The Chairman brought to the notice of the MD different issues being confronted by the industrialist’s particularly new connections, low gas pressure, requirement of large Gas meter room, Gas Reserves, captive power plants, Rising Tariff and Insertion of Sales Tax Registration Number. The MD told that the details of such cases may be sent to him so that the same can be reviewed on case to case basis. However, for some cases he promised to personally look into these. The MD informed the delegation that Sui Southern and Sui Northern are two independent gas companies with their own governing boards. He informed the delegation that for Sindh Sui Gas reserve is good for next 30 years. He said that every year during the season of winter the gas pressure is low, however within next five months new pipeline of 20” project from Hub to Shesrhah will be completed and these problems will be resolved. He also stated that for increase of Gas Tariff the OGRA is responsible and OGRA also chalks out energy policies. On the question of gas connections for power generators, the MD asked the delegation to provide a list of members who want to install power generators. On the demand of the delegation, MD agreed that Joint Reading System would be arranged for Industrial consumers in near future. The Chairman thanked the MD for taking interest in solving their problems. On behalf of APTPMA, the delegation, assured the MD of its fullest support and cooperation. Members of the delegation comprised of M/s. Abdul Ghaffar Essa, Altaf Shekhani, M. Iqbal Arbi, Abdul Sattar, Arshad Tanveer, Aslam Moten, M. Shakil and Inam Akhtar. The MD was assisted by senior officers of the SSGCL.

9.

FIRE PREVENTION MEASURES

During last two months there were several major fire outbursts in our factories locate in S.I.T.E., Landhi and Korangi Industrial Areas causing colossal loss to the owners as well as economy of the city, resulting in unemployment and even a few cases of loss of human lives. In order to guard against such undesirable incidents, it is necessary that the Industrial establishments take necessary preventive measures. For this purpose following suggestions are made for the consideration of members of our Association. (i) Sufficient number of Fire Extinguishers of different types for fabric, chemical, electricity and oil and fire buckets should be provided according to prescribed schedule. Refills to be made after every six months to keep the equipment ready for use. Hydrants for large size plots may be provided. Employees should be trained to control fire in case of emergency. Sufficient quantity of water to be kept in reserves to meet any emergency

(ii) (iii) (iv) (v)

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46

(vi)

Fire brigades, KESC, Sui Gas Company’s telephone numbers should be available at the main gate of each factory. Fire alarm should be installed to alert the occupants in the premises. A separate line of water to be installed from the main or reserve tank to every department to meet any emergency in case of fire. Emergency wooden gates or doors should be kept at front walls of the building so as to give access to fire persons in case of emergency.

(vii) (viii)

(ix)

10.

REPORT ON DISSEMINATION SEMINAR ON REEE PROJECT AT SMEDA OFFICE KARACHI, 11-03-2008

Mission: To disseminate best practices/outputs with remaining stake holders as Gul Ahmed
Textile got profit from this REEE Project.

Chief Guest: Mr. Aness Motiwala (Chairman APTPMA) Beneficiaries: Textile Wet Processing stake holders, General Managers and all Technical persons. Partner Organizations:
GTZ: (German Technical Corporation) SMEDA: (Small & Medium Enterprises development Authority) NPO: (National Productivity Organization)

Conclusion:
A seminar was held at SMEDA office Karachi, on March 11th, 2008 to share energy saving potentials, best practices and outcomes of energy audits, which were conducted in the past few months under Renewable Energy & Energy Efficiency Programme (REEE) by German Technical Cooperation (GTZ), Small and Medium Enterprise Development Authority (SMEDA) and National Productivity Organization (NPO) at Gul Ahmed Textile Mills and Al-Karam Textile Mills. SMEDA senior officials Mr. Fayyaz Ahmed Riaz DGM (Industry Support Cell) and Ms. Sobiah Malik, Advisor of REEE from GTZ provided an overview, current status and future strategies of REEE program and announced new partners like Ministry of Textile on this rising issue. A brief presentation was given by Mr. Anees Motiwala, Chairman, All Pakistan Textile Processing Mills Association. He ensured that APTPMA will provide more opportunities and facilities to arrange Energy audits, training/seminars with all organization, which are working on the issue of energy and he suggest to Govt. of Pakistan that Govt. should provide facilitate to stake holders in the shape of that type of programe. It was also informed to all participants that SMEDA, GTZ are going to arranging new sessions for energy audits with new partners. Mr. Riazat Hussain (Director ProjectsGul Ahmed) indicated in his presentation many areas for saving energy; he defined many technical issues/parameters during the working on the saving of energy in his mill. During the presentation Mr. Khursheed Alam (Utility Manager-Gul Ahmed) also gave many suggestions and ideas for water recycling and control on excessive use of hot water. Concluding, Mr. Muslim Raza Provincial Chief (SMEDA-Sindh) acknowledged the efforts of SMEDA for conducting this seminar regarding energy conservation and its importance. He ensured

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that in future SMEDA will continue this sort of activities and expected more interest and coordination from stake holders.

11.

RESULTS OF OUR FACT FINDING MISSION OF NOVEMBER 2007

Dear Chairmen and Secretaries of the associations TMA, PRGMEA, APTPMA, PCMA and PHMA, some months have passed since we met during our fact finding mission in Pakistan in November 2007. The aim of our mission was to identifiy partners and to develop a concept of a possible project on ecologically sustainable production of the textile industry in Pakistan. Today I have come back to you with good news. The project has not yet been approved by the German Federal Ministry of Economic Cooperation and Development (BMZ), though, we have received positive feedback from the Ministry on Mr. Wolfgang Duerig’s evaluation report. The Ministry gave us “green light” for the submission of an application. The evaluation report proposes the following five associations to be partners of the project: • • • • • All Pakistan Textile Processing Mills Association (APTPMA) Towel Manufacturers’ Association of Pakistan (TMA) Pakistan Readymade Garments Manufacturers and Exporters Association Pakistan Cloth Merchant's Association (PCMA) Pakistan Hosiery Manufacturers Association (PHMA)

Please find enclosed the English summary of the evaluation report. The report itself is only available in German. In order to provide you with more details about the envisaged contents of the project, you will find the English translation of the proposed activities and indicators for the results mentioned. Please note that the activities and indicators will be further discussed in a planning workshop after the commencement of the project. The next steps will be as follows: SEQUA will submit an application to the Ministry within the next two weeks and will most probably get a reply at the end of April, maybe even earlier. The hopefully - good news will then be transmitted to you by your German project partner bfz (Berufliche Fortbildungszentren der Bayerischen Wirtschaft gGmbH). Please note that Mr.Birgitt Alger, whom you met during the fact finding mission, will leave bfz. Therefore your contact partner at bfz will change.
For your information: The first project phase we applied for, shall have a duration of three years. After that phase extensions up to 8 years are possible. It means that we are laying grounds for a long-term co-operation. We will contact you as soon as we have a reply from the ministry.

Best regards

Bettina Müller
Project Director

Evaluation Summary Report
This report provides a summary of a fact-finding-mission in Pakistan from the 28th of October until the 09th of November. The purpose of the visit was to identify and analyse business associations of the Pakistani textile industry in order to start a partnership project with bfz,

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Berufliche Fortbildungszentren der Bayerischen Wirtschaft gGmbH. The proposed project focuses on two main issues: To strengthen the organization of the associations by establishing new services. One of the new offers will link together member enterprises on one hand and Pakistani environmental consultants on the other. Furthermore, it is intended to disseminate information and knowledge about environmental protection in the textile industry. To initiate new approaches in the management of the enterprises by enabling them to identify and release solutions to save energy and to decrease water waste. The mission team visited six textile associations in the region of Karachi, where most of the enterprises of the Pakistani textile industry are located. The common evaluation criteria for the organizations were: • • • • Anticipated ability to carry out the planned actions successfully and to ensure its efficient management, Capabilities of staff to make a significant contribution to the project, Potential to activate members, the mindset of the members of the board.

Furthermore the consistency was evaluated in respect of the • • Relevance of the objectives and the Quality of the plan for using and disseminating the knowledge,

At the end, five out of six associations were identified who showed the requirements and interest to take part in the partnership project. These are: • • • • • All Pakistan Textile Processing Mills Association (APTPMA) Pakistan Readymade Garments Manufacturers and Exporters Association Pakistan Cloth Merchant's Association (PCMA) Pakistan Hosiery Manufacturers Association (PHMA) Towel Manufacturers Association of Pakistan (TMA)

A focal point of the project is the introduction of so called focus groups in the associations. Under the guidance of a group consultant, representatives of member companies shall discuss environmental issues of the textile industry and develop possible solutions for the enterprises. The associations are supposed to give their members access to appropriate services. Members of the staff will be trained accordingly. Among other activities, a database will be set up to provide the enterprises with addresses of experts and consultants, who can help the enterprises to find the right solutions for their environmental problems. The proposed project will have a long term impact on the environmental development of the textile industry (sustainability). This is assured by the training of teachers of the SMA Rizvi Institute. The issues of energy saving and environmental protection will be part of the training of skilled workers in the textile industry. It is important to implement these ideas as early as possible into the training, so that they will find their way into the production process directly. The project has clearly defined objectives with indicators, which should make it easy to evaluate the progress. Finally a platform will be established to promote the idea for a better production in the textile

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industry by applying solutions to protect the environment. This forum will also express the interests and demands of the member enterprises towards the government.

Findings:
• • • • The topics and objectives of the proposed project are relevant for the textile industry The project is in line with the priority and the principles of the BMZ The project has ecological, economic and social dimensions. The proposed activities are ambitious in terms of helping to solve environmental problems, but they are adequate in respect of the intended outcome of the project. There are some restrictions in the political framework. In recent years, militant Islamists have rebelled against the Pakistani government. On November 3, 2007 President Musharraf declared an emergency rule across Pakistan and purported to suspend the Constitution, imposing martial law. In the meantime, this emergency rule is suspended. Benazir Bhutto, leader of the opposition party Pakistan Peoples Party, was murdered on the 27th of December 2007. The country is in some parts insecure. This has to be kept in mind. However, so far no hostilities towards foreigners have been noticed. s It depends on the willingness and economic ability of the enterprises to invest in technical solutions of environmental protection. But even small modifications of the manufacturing process can achieve a lot. Many of the measures which can be arranged are not that expensive and the reduction of costs may even lead to a win at least in the long run.



The exploitation of the results is assured by the intention to integrate local consultants. They will be responsible for the dissemination of technical solutions in the sector of the textile industry. Furthermore, it is intended to cooperate with other projects conducted by CPI and GTZ in Pakistan.

The structure of the project will be as follows: Overall objective of the project: The economic and social development of the country is enhanced by the ecologically sustainable production of the Pakistani textile industry The Project goal: The enterprises of the textile industry work economically more efficient und more sustainable by using adopted technologies.

Result (expected outcome) 1: Together with their member enterprises the partner associations have identified needs for consultancy in ecologically sustainable production in the textile industry; the associations have identified appropriate solutions and offered consultancy services. Result (expected outcome) 2: In SMA-Rizvi-Institute, integrated courses to instruct principles and techniques of ecologically sustainable production in the textile industry are implemented. Result (expected outcome) 3: The partners have established a platform on the topic of “ecologically sustainable production” in order to communicate the interests of their members to the public.
Proposed activities and indicators for each result are described in the report. References: The structure of the project is clearly outlined. All levels of the work are precisely explained. The expected results are realistic and the activities adequate. The project should be embedded in the partnership programme, which is administrated by SEQUA. A strong cooperation with GTZ and CPI is recommended. The evaluator approves the proposed project to be supported and financed by the BMZ.

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12.

MR. M. ZUBAIR MOTIWALA MEETS CHIEF MINISTER DESIGNATE OF SINDH–22.03.08:

Mr. M. Zubair Motiwala, former President KCCI, former Chairman All Pakistan Textile Processing Mills Association and Nominee of KCCI on the committee of KESC/KCCI, while commenting on, his meeting along with other members of business community with Syed Qaim Ali Shah, Designated Chief Minister of Sindh. He said this is a very welcome move by majority party to nominate him, as his nomination, would not bring about the issues which normally errupt, when a new person takes over. He requires minimum six months to settle down and understand the working environment, Shah Shab has run this province earlier as well so the work will start from day, one furthermore, he is a seasoned politician and has long experience. With regard to the meeting, he said Shah Shib was very keen to listen to the Business Community with regard to the problems faced by them in conducting their Business activities, He was also curious to know, why the pace has slowed down, in terms of exports, He wanted to know their frank and candid views. Mr. M. Zubair Motiwala apart from several other problems appraised, him about four main reasons for retardation of Business activities,

(i)

Worst Law & Order Situation, so much so that even dacoities are taking place in industrial area where 20 to 30 dacoits come and remain in the factory for four hours and goods are loaded into trucks apart from daily Car, Mobile snatching and domestic dacoities.

(ii)

Worse ever Power Supply position in Karachi while elaborating the current situation
Zubair Motiwala informed that this load shedding if only 700 MG watt is provided by WAPDA can be averted. Attitude of discrimination with Karachi needs to be corrected.

(iii)

Perception of Pakistan with regard to retardation in exports he was informed that perception of Pakistan is mainly responsible as importers, while our foreign buyers are reluctant to come to Pakistan and do not want to import from Pakistan their respective country’ advisory service also restricts them to travel to Pakistan.

(iv)

Water crises in Industrial Area and their uplift; He emphasized that water shortage will badly hit the export target and the much needed foreign exchange earnings. He said that Karachi Industrial areas are paying 70% of the country’ taxes, but it receives unfair treatment. Water shortage has crippled industrial and business activities.

Shah Sahab gave a patient hearing and promised to take-up these four points on urgent/priority basis when he assumed the charge of CM. He also assured that with the help of business community leadership, things would be brought back to normal and conducive atmosphere would be provided to investors, in terms of law and order and through dialogue the issue of KESC would also be resolved. Concluding, he appealed to the Business Community to gear up their resources and serve the Country to uplift the standard of life of common man through more & more investment to create more & more jobs.

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13. a: GENERAL SALES TAX AND REFUND
Meeting in the Collectorates of Sales Tax & Federal Excise, Karachi

Mr. Anees Motiwala, Chairman of the Association along with concerned members attended the meetings of Collectors of Sales Tax & Federal Excise, and submitted various proposals and suggestions received from the members, and forcefully took up their pending issues in these meetings.

b:

Inordinate delay in refund of Sales Tax Claims.

The Association received many representations from its members about the problem faced by them due to inordinate delay in refund of their sales tax claims. It is heartening to learn that on our Association’s recommendation, almost all the refund claims were processed.

c:

Blocking of Sales Tax Registration Numbers:

On receiving complaints from its members about blocking of their sales tax registration numbers, arbitrarily i-e without serving them any prior notice, or assigning any reason or seeking explanation, the Association took- up the issue with the Collector Sales Tax & Federal Excise. The Association is pleased to inform that on its recommendation, their registration numbers were deblocked.

d:

Representation for Zero rating in Utility bills and Verifications of undertaking of Sales Tax Refund;

From time to time in our meeting with Collector Sales Tax & Federal Excise, the issue of Zero Rating status for utilities bill of our member was strongly taken up, there were many cases in which either the power bills only were zero rated and other case in which the gas bills only zero rated. Our representation is that one if utility was zero-rated why the other utility not be so. The following table will show our performance during the year 2007-2008. Attestation of Sales tax document Recommendation for Zero rating on utilities bills of textile units 536 cases 98 cases

e:

Miscellaneous:

A large number of representations were made on letters received from the members on their problems relating to Sales Tax such as inordinate delay in refund of Sales Tax claim, misuse of discretionary powers and wrong interpretation by the Tax Officials and issuance of blacklists to the respective authorities for their early resolution, which resulted in relief in many cases. Many press releases on current issues and problems of the members were issued. Various matters were got published in Annul Report for the information and comments/suggestion from Association members, were invited.

14.

WITH HOLDING TAX (INCOME TAX)
Representation for Zero rating in Utility bills;

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From time to time in our meetings with Additional Commissioner of Income Tax, the issue of Zero Rating status for utilities bill with regard of With Holding Tax (WHT) of our members was strongly taken up. The following figure will show the performance during the year 2008-2009. Recommendation for Zero rating on utilities bills of textile units 128 cases

15.

COMMUNICATION

Communication is an important tool in the fast growing business & social contacts. There are different modes of communication which have contemporarily gained a due importance in the present era such as Telephones, Cell phone, WLL (Wireless Loop) besides many others, means of Communication. The business community of Karachi has faced many problems in the past regarding communication system of the country therefore All Pakistan Textile Processing Mills Association formed a SubCommittee of Communication a few years back, to look into such problems and facilitate the members in getting resolved their Telephone problems.

16.

MEETING WITH MR. REHMAT GENERAL/EVP.PTCL. 18-03-2008

ULLAH.

DIRECTOR

On the invitation of Mr. Anees Motiwala, Regional Chairman, Mr. Rehmatullah, DG/EVP PTCL visited Association’s office. He was also accompanied by the following officers of PTCL 1. Mr. Waqar Hafiz, General Manager (Coordition) South, Karachi. 2. Mr. Mushir Khan, Regional General Manager-III, Karachi 3. Ehsanullah Malik, General Manager (Development), Karachi. 4. Rizwan Bhutto, General Manager (Customer Care), Karachi. 5. Mr.Abdul Ghaffar Rao, Senior Manager (O&M), Nazimabad. 6. Mr. Ikram Hassni, Senior Engineer (Operations), SITE, Karachi. He informed the meeting that over 600 ONU’s on optical fiber have been installed in Karachi metropolitan area which will also provide triple play i.e., on same line you would be able to access High speed Data, TV and Telephone, which is going to be offered shortly on competitive rates, He further informed that in Karachi there are about 1,700 pending demands for telephones, which would be cleared in the shortest possible time. He also offered full support of PTCL and said that APTPMA members can contact the senior officials any time for any assistance regarding to telecommunication. Mr. Anees Motiwala informed about Association’s background and highlighted the importance of the communication in the society at the occasion and asked the PTCL Authorities to overcome the problems regarding the technical faults of the telephones in Karachi on priority bases and he also demanded to remove the charges of line rent and local call charges. He was of the view that PTCL is providing good quality services but we want something extra, which can benefit the business community. He said that PTCL after its Privatization a lot of improvement is required in order to become customer friendly. In order to facilitate the members more effectively for rectification of faults in their phones and for expeditious redressal of their complaints a lot has to be done. The DG informed the members that in future an officer with lineman of PTCL will sit in the Association's office who is fully cooperating with the members and is coordinating in getting the defects and faults in lines removed

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on priority basis. A PTCL-APTPMA liaison committee consisting of five members was also formed by DG PTCL to coordinate between the Association and the PTCL. Nominees of the Committee would include: 1. Mr. Mushir Khan, Regional General Manager-III, 2. Mr. Ehsanullah Malik, General Manager (Development), Karachi. 3. Mr. Rizwan Bhutto, General Manager (Customer Care), Karachi. 4. Mr. M. Arif Lakhany, former Chairman APTPMA 5. Mr. M. Arif Bilwani, former Member Executive Committee APTPMA Mr. Mushir Khan, Regional General Manager-III, Karachi, PTCL said that APTPMA and its members are old patrons of PTCL and PTCL is well aware of the difficulties of the business community. He also informed the House that teams have been constituted, who are working constantly for the execution of pending demands in the city. . Prominent Industrialists who participated in the meeting were Mr. M. Zubair Motiwala, M. Nisar Shekhani, Mr. Abdul Ghaffar Essa. Mr. M. Iqbal Arbi, Iqbal Lakhani, Arif Bilwani.

17.

FIRST FORTNIGHT MEETING MINUTES

In continuation of the meeting with SITE Association of Industry / APTPMA held on 18-03-2008 in the conference room of All Pakistan Textile Processing Mills Association (APTPMA) Mr. Anees Motiwala Chairman APTPMA, Mr. Muhammad Nisar Shekhani, Chairman, SITE Association of Industry and other members of both Association, with Mr. Rehmatullah Khan, Executive Vice President (BZS) PTCL H/Q Karachi along with Mr Waqar Hafiz GM Coordination PTCL H/Q South, Mr. Ehsanullah Malik, General Manager (Development), Mr. M. Mushir Khan, Regional General Manager-III, Mr. Rizwan Bhutto, General Manager Customer Care, Mr. Abdul Ghaffar Rao, Sr. Manager (O&M) Naziamabad, Syed Ikram Ali Hassni, Sr. Engineer (Ops) SITE, the first fortnight meeting was held on 29-03-2008 at 11:30 Hrs. in the office of SITE Association of Industry to discuss the grievances of SITE Association & APTPMA. The grievances were discussed with SITE Association / APTPMA and the following progress of their faulty telephones was intimated to them and the Sr. Engineer (Ops) SITE has been directed to clear the grievances of all remaining faulty telephones relating to APTPMA & SITE Association of Industry within two days, and inform the members of SITE Association & APTPMA via email. Details of the complaints are being hereunder:

Particulars
Total Complaints Rectified Complaints Final Closed Numbers Closed Under Non Payment Other than SITE Association Numbers Under Repair

APTPMA
127 90 3 1 0 33

SITE ASSOCIATION
242 194 7 1 5 35

We have also established PTCL office in the SITE Association office to resolve their grievances / issues immediately and deputed Mr. Aleem Ahmed, ESP & Mr. Saleem, Lineman and opened telephone number 2571019 in the office of SITE Association of Industry for requisite contact.

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18.

MEETING WITH H.E. SATYABRATA PAL HIGH COMMISSIONER OF INDIA, ISLAMABAD ON 06/11/2008 AT 11 AM AT HIGH COMMISSION'S OFFICE

A small delegation of All Pakistan Textile Processing Mills Association led Mr. Anees Motiwala, Regional Chairman APTPMA, Karachi visited High Commission of India Islamabad and met with HE Satyabrata Pal at his Office. The HE welcomed Delegation the in High Commission, Islamabad. Mr. Anees Motiwala informed him about Association activities to HE and assured him, on behalf of APTPMA of its fullest support and cooperation. The Chairman informed him about the purpose of visit to High Commission and told him that a business delegation will visit Bangalore India to attend ITEM 2008 between 15th - 22nd November 2008 and they want to meet with Textile & Commerce Ministers and different Textile Association in India. The High Commissioner told for this purpose the Association may contact directly with High Commission of Pakistan in India. The Chairman told that some of their members want Double Entry business visa for India because during the month of April 15-18 2009 another textile machinery exhibition (Texaco) will be held at New Delhi, India. The HE assured him the High Commission would consider it. Mr. Anees Motiwala also thanked HE for Commercial/Business magazine sent by Commercial section of High Commission to the Association on monthly basis. About the possibility of investment in India and Joint venture the High Commissioner stated that there is no possibility for investment in India but Joint venture is possible with Indian' companies. The HE informed that some of the Association have used Association' letterhead for visit visa purpose, that it is not right, He asked the Regional Chairman that Association recommends visa business purpose on its letterhead. On the question about payment in local hotel in India by businessmen, the HE informed that this is law that all foreigners would pay hotel charges in Dollars only. About directly sending passport to HCI by members, His Excellency told that our members should submit their passports to TCS/FedEx and send a letter reference from Association with TCS/FedEx receipt No. to Commercial section of High Commission of India, Islamabad. In conclusion, he assured the members that High Commission of India in Pakistan would extend all possible co-operations for issuing business visas if it was recommended by the Association. In the end the Chairman presented APTPMA crest, Annual Report and Membership Directory to the High Commissioner as a token of goodwill.

19.

MINUTES OF MEETING

In continuation of the 1st fortnight meeting with SITE Association of Industry / APTPMA held on 29-03-2008 in the Office of SITE Association & Industry, the 2nd Fortnight meeting was held on 1904-2008 with Mr. Muhammad Nisar Shekhani, Chairman, SITE Association of Industry and other members of both Association, in the office of SITE Association of Industry to discuss the grievances of SITE Association & APTPMA. The following are participants:

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SITE ASSOCIATION SIDE: 1. 2. 3. 4. Mr. Muhammad Nisar Shakhani, Chairman SITE Association of Industry. Mr. Zafar Ahmed, Sr. Vice Chairman SITE Association of Industry. Mr. Nasim Khan, Secretary SITE Association of Industry. Mr. Faisal Baig, Communication Incharge SITE Association of Industry.

APTPMA SIDE: Mr. Inam Akhtar, Regional Secretary PTCL SIDE: 1. 2. 3. 4. 5. Mr. M. Mushir Khan, Regional General Manager-III Karachi Mr. Ehsanullah Malik, General Manager, Development (South) Karachi. Mr. Najam, Sr. Manager, Customer Care, Karachi Mr. Abdul Ghaffar Rao, Sr. Manager (O&M) Naziamabad Karachi Syed Ikram Ali Hassni, Sr. Engineer (Ops) SITE Karachi.

RECOMMENDATIONS MADE FOR ITS MEMBERS BY APTPMA REGARDING NEW PHONE CONNECTION AND RESTORATION OF TELEPHONE CONNECTIONS, FAULTY OR DEAD.
APTPMA as per its policy has always been cooperating with members at the highest and recommendations were made to the concerned communication authorities for the resolution of related problems. Communication Sub Committee of APTPMA also sent hundreds of recommendation letters and approaches to the concerned authorities telephonically. The Communication Sub-Committee kept a close liaison with the Telecommunication Authorities and many of the complaints about the problems faced by the members of the Association related to Telecommunication were taken up at the highest level by the Association and most of them were got resolved.

FOLLOWING TABLE WOULD INDICATE THE RATIO OF SERVICES PROVIDED BY APTPMA TO ITS MEMBERS REGARDING TELECOMMUNICATION.
Technical Faults (Office) Technical Faults (Residence) Restoration of Lines (office) Restoration of Lines New Connections (Phones) Transfer of Phones Change of Name (Phones) Excessive Billing cases : : : : : : : : 1827 217 1421 215 02 03 05 04

20.

FINANCES:

Matters relating Finane were managed by Mr. M. Iqbal Arbi. We are highly thankful to him for the devotion of time in regularly checking and monitoring the accounts and ensuring timely Annual Audits and preparation for Annual Accounts and Auditors Report.

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21. ASSOCIATION’S REPRESENTATION ON VARIOUS BODIES
• • • •

Name of the Body
Member Advisory Committee Collectorate of Sales Tax & FE Member Advisory Committee Collectorate of Customs Member of Income Tax Advisory Committee(CIT) Alternate Dispute Resolution Committees under section 47 of the Sales Tax Act, 1990

Nominees
Anees Motiwala Anees Motiwala Anees Motiwala M. Zubair Motiwla Sikander Imran M. Nisar Shekhani Anwer Aziz M. Zubair Motiwala M. Zubair Motiwala M. Zubair Motiwala M. Zubair Motiwala M. Zubair Motiwala M. Zubair Motiwala M. Zubair Motiwala M. Zubair Motiwala M. Zubair Motiwala Naseem A. Sattar M. Zubair Motiwala M. Tariq Yousuf Dr. Arshad A. Vohra Dr. Arshad A. Vohra Arshad Tanveer Dr. Arshad A. Vohra Dr. Arshad A. Vohra Dr. Arshad A. Vohra Dr. Arshad A. Vohra Dr. Arshad A. Vohra Sikander Imran Abdul Sattar Shoaib Majid M. Nisar Shekhani M. Iqbal Arbi M. Nisar Shekhani Naseem A. Sattar M. Iqbal Arbi M. Nisar Shekhani Sikander Imran Jawed Bilwani Saqib Bilwani

• Member of Pak-Oman Investment Board of Directors • Member of Advisory Committee of FTO Member of Advisory Committee of Ministry of Science • Member of Advisory Committee of Commerce Member of Advisory Committee of Textile • Member of Workers Welfare Board EOBI Coordination Committee Advisory Committee of Pakistan Railway Sectoral Committee (TDAP) Better Business advisory Council Dispute Resolution Committee EOBI • Member of Governing Body, Govt. College of Technology • Member Board of Director, SITE Ltd, • Member, Sindh Technical Educational Board Tax (Property) Advisory Committee Sindh Labour Advisory Board Member Pakistan Environment Protection Council, Govt. of Pakistan • Member Board of Directors PNSC • Member of Customs Valuation Committee of Man-made/Art Silk Fabrics • Member of Employment Advisory Committee • Member of Regional Commissioner of Income Tax (RCIT) Advisory Committee • Member of Quoto Adversity Committee, EPB • Commissioner of Income Tax Special Zone Self Assessment Scheme Advisory Committee Member Custom Intelligence Surveillance Committee PCC Committee of Custom House

22.

CHAIRMEN/ADVISORS/MEMBERS OF SUB-COMMITTEES

At the beginning of the year, the following sub committees which is formed to represent the Association on various issues pertaining to our members as well as policy matters.

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Caustic Soda Taxation (Sales Tax/Direct tax) Labour/Provincial/Local Tax EOBI/Environment/Social Audit Water Supply & SITE Ltd. Accounts and Finance Law & Order/ Communications Diplomatic Affairs/ Fairs & Exhibitions/ Liaison with Foreign Delegations Ports/Shipping/Customs

Mr. Sikander Imran Mr. M. Zubair Motiwala Mr. M. Asif Teil Dr. Arshad A. Vohra Dr. Arshad A. Vohra Mr. M. Altaf Shekhani Mr. M. Iqbal Arbi Mr. Rauf A. Sattar Mr. Majyd Aziz Mr. M. Iqbal Lakhany Mr. Abdullah Rafi

Chairman Advisor Chairman Chairman Advisor Chairman Chairman Chairman Advisor Chairman Chairman

23.

OBITUARY

During the current year the Near and Dear ones of our following members passed away Mother of Mr. M. Arif Lakhany & Mr. M. Iqbal Lakhany Uncle of Mr. M. Nisar Shekhani

INNA-LILLAH-E-WA INNA ILAIH-E-RAAJE’OON!
May Allah grant eternal peace and a place in heaven to the departed soul and bestow courage and fortitude to family members of the bereaved family to bear this irreparable loss. Ameen! Fateh was offered and appropriate condolence resolutions were passed in the Executive Committee meetings. “WE ARE FROM ALLAH, TO WHOM WE HAVE TO RETURN”

24.

MAJOR EVENTS & MEETINGS ATTENDED BY THE CHAIRMAN, MR. ANEES MOTIWALA, OTHER OFFICE BEARERS, MEMBERS EXECUTIVE COMMITTEE AND SENIOR MEMBERS OF THE ASSOCIATION DURING THE YEAR 2007-08
EVENTS & MEETINGS:
Luncheon Meeting with Ms. Musarrat Jabeen, Member Sales Tax & Federal Excise, Central Board of Revenue at KCCI’s office. Meeting with Brig. (Retd.) Akhtar Zamin, Chairman, EOBI at KCCI Luncheon Meeting with Mr. Frank Scherschmidt, Chief Executive Officer, Karachi Electric Supply Corporation Limited at SITE Association’s office. Meeting with Mr. Azhar Majeed Khalid, Collector of Customs (Appraisement) at Chamber. Launching Ceremony of PBIF and Dinner Reception, organized by Mian Zahid Hussain, President, Pakistan Businessmen and Intellectuals Forum at Beach Park, Clifton, Karachi. Meeting with H. E. Mr. Erdem MUTAF, Consul General of the Republic of Turkey at Association’ office, Karachi.

DATE:
14.11.2007

16.11.2007 17.11.2007

17.11.2007 21.11.2007 10.12.2007

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12.12.2007

Reception on the Occasion of the National Day of the Kingdom of Bahrain, hosted by H. E., Mr. Hameed Ali Al-Saffar, Consul General of Bahrainat Darbar Hall, Hotel Sheraton, Karachi. Executive Committee Meeting at Association’s office. Annual General Body Meeting at Association’ office. KCCI’ Annual General Body Meeting at chamber’ office. SITE Association’ Annual General Body Meeting at SITE’ office. Meeting with HE Masoud Mohammad Zamani, Consul General of I. R. Iran at Iran Consulate at Karachi Meeting with HE Hans-Jochim Kiderlen, Consul General of the Federal Republic of Germany regarding Visa Policy of German Consulate at Karachi Meeting with Mr. Arif Ali Khan Abbasi, Care taker Provincial Minister for Labour, Ind. & Transport Govt. of Sindh, Karachi. 59TH Republic day of India, organized by HE Satyabrata Pal, High Commissioner of India at Marriott Hotel, Islamabad. Invitation from Mr. Hamish St Clair Daniel, OBE, British Deputy High Commissioner to introduce new British Deputy High Commissioner at BDHC’ House, Karachi. Meeting with Japanese Cultural officer at the Japan Cultural Centre, Consulate General of Japan, Karachi. Meeting with Japanese Cultural officer at the Japan Cultural Centre, Consulate General of Japan, Karachi. Visit of APTPMA delegation to Kulsoom Valika (Social Security) Hospital, SITE, Karachi Dinner Meeting with 20-Member High Powered Moroccan Trade Delegation, led by, Mr. Mustapha Mechahouri, Minister of Foreign Trade Morocco, convened by Dr. Mirza Ikhtiar Baig, Chairman at SITE Regent Plaza Hotel, Karachi. Meeting with 3-Member Delegation from Poland along with H. E. Ireneusz Makles, Consul General of the Republic of Poland in Karachi at SITE Association’s office. Reception on the Occasion of the National Day of Sri Lanka, hosted by H. E., V. S Sidath Kumar Consul General Consulate General of the Democratic Socialist Republic of Sri Lanka at Hotel Avari Tower, Karachi.

27.12.2007

30.12.2007 30.12.2007 22.01.2008

24.01.2008

26.01.2008

26.01.2008

29.01.2008

29.01.2008

29.01.2008

27.01.2008 01.02.2008

02.02.2008

04.02.2008

09.02.2008

Meeting with Mr. Shujaat Ali Baig, Minister for Education, Government of Sindh at Chamber. 27th Anniversary of the Victory of the Islamic Revolution in Iran, organized by Masoud Mohammad Zamani Consul General of the Islamic Republic of Iran at its Consulate, Meeting with Mr. Azim Iqbal Siddiqui, Managing Director Sui Southern Gas Company Limited (SSGCL), at SSGCL’s Head Office Karachi. Luncheon Meeting with Ms. Monika Ruhl Burzi, Under-Secretary of State of the Swiss Federal Department of Economy and Members of her delegation at Sindh Club, Karachi.

11.02.2008

13.02.2008 15.02.2008

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15.02.2008

Dinner in honor of Ms. Monika Ruhl Burzi, Under-Secretary of State of the Swiss Federal Department of Economy and Members of her delegation at 98, Block No. 5, Clifton, Karachi. Meeting with Mr. Shafqat Mehmud, Collector of Sales Tax & FE (Enforcement), Karachi at his office. Opening Ceremony of the Asia Pacific Dental Congress at Sindh Governor’s House, Karachi. Meeting with Consul General of the Sultanat-e-Oman, H. E. Mr. Nasser Saif-Al-Hosni and Consul General of Russian Federation, H. E. Mr. Vladimir V. Seliverstov, convened by Mr. Sharjeel Memon at his residence, Karachi. Meeting with Mr. Sajid Mahmood Lakhan, Industry Support Cell, SMEDA, Karachi at Association’s office. Meeting with Mr. Shahzada Alam Monnoh, Federal Minister for Commerce, Textile Industry, Privatization and Investment, Government of Pakistan at Chamber, Karachi. Seminar on “Consumer Protection Legislation in Sindh: Opportunities and Challenges” under Access to Justice Program at Hotel Mehran, Karachi. Meeting on Budgetary Proposals - Value Added Textile Sector, convened by Textile Commissioner at his office, Karachi. Seminar on “Dissemination of Best Practices (Renewable Energy & Energy Efficiency Programme) at SMEDA’ office (5th Floor, Bahria Complex – II, Molvi Tameezudin Khan Road, Karachi). Meeting with Chairman FBR, Mr. M. Abdullah Yusuf, at Hotel Marriott, Karachi. Launching Ceremony of 5th International Exhibition “My Karachi 2008-Oasis Harmony” at Hotel Marriott, Karachi. Meeting with Mr. Rehmat Ullah, Executive Vice President, PTCL (South Zone) at Association’ office, Karachi. Invitation form Mr. Ian Dinsdale, Visa Commercial Team Manager, Visa Section, British High Commission, at Marriott Hotel, Islamabad. Networking Gala Dinner of ITIF Asia 2008 Exhibition & Conference, given by Dr. Ishrat ul Ebad Khan, Governor of Sindh at Sindh Governor House, Karachi.

16.02.2008

23.02.2008

28.02.2008

29.02.2008

01.03.2008

07.03.2008

11.03.2008

11.03.2008

12.03.2008 13.03.2008

18.03.2008

19.03.2008

19.03.2008

19.03.2008

Meeting with Lt. General (Rtd.) Farooq Ahmed Khan Chairman, Prime Mininster’s, Inspection Commission, regarding power supply in Karachi, at KCCI’ office. Seminar on the Exploration of Pakistan’ Export potential in China and Malaysia at KCCI’ Pre Budget Seminar & Book Launching ceremony at Hotel Marriott, Karachi. Reception on the occasion of 37th Anniversary of the Independence and National Day of Bangladesh, given by Mr. Saquib Ali, Deputy High Commissioner of Bangladesh at Hotel Avari Towers, Karachi. Meeting with City Nazim Karachi, Syed Mustafa Kamal at Karachi Chamber of Commerce & Industry.

25.03.2008 27.03.2008 27.03.2008

28.03.2008

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29.03.2008

Meeting to Review & Re-Vamping System of KESC, convened by Advisor to Chief Minister Sindh for Finance Department at his office, Karachi. Meeting with Mr. Mohammedmian Soomro, Chairman Senate, Government of Pakistan at SITE Association’s office. Inaugural Ceremony of Expo-2006, organized by Mr. Humayun Akhtar Khan, Federal Minister for Commerce at Expo Center, Karachi. Expo 2008 Investment Conference, organized by State Bank of Pakistan and Export Promotion Bureau, Government of Pakistan at Sheraton Hotel, Karachi. Invitation as “Guest of Honor” at 5th Textile Asia 2008 Intl Exhibition and Machinery Show 4-7 April 08 at Karachi Expo Centre, Karachi. Dinner Meeting – Governor, State Bank of Pakistan, Dr. Shamshad Akhtar would present a talk on “Pakistan - Economic Prospects & Challenges”, arranged by Mr. Abdul Kader Jaffer, President, Pakistan Japan Business Forum at his residence, Karachi. Meeting to discuss important R&D matters at PHMA’ House. Meeting with Mr. Kazim Ali Balouch, Chief Fire Officer, CDGK at SITE Association’s office. Meeting with Governor State Bank, Dr. Shamshad Atkhtar, convened by Mr. Gulzar Firoz, Chairman, Korangi Association of Trade & Industry at its Association. Visit to Kulsoom Valika Hospital, SITE, Karachi Meeting with Chairman CBR, at KCCI’ office, Karachi. Presentation about Civil Defence Standards at SITE Association’ office, Karachi. Reception on the occasion of Birthday of HM Queen Elizabeth II, given by HE Mr. Robert W. Gibson, British Deputy High Commissioner at BDHC’ office, Karachi. Invitation of 1st MEGATEX 2008 (International Machinery Exhibition of Garment & Textile Technology) 15-18 April 08 at Karachi Expo Centre, Karachi. Invitation of 1st MEGATEX 2008 symposium on “ Emerging Textile Technologies In Pakistan” 16-17 April 08 at Karachi Expo Centre, Karachi. 5th Meeting of R&D Facilitation Committee for Research and Development supports to Textile Industry at Textile’ Commissioner’ office, Karachi. Invitation from Thai Consulate of Thai Exhibitions at PC Hotel, Karachi. Meeting with Mr. M. Hafeez, Ambassador, Designate to Algiers at TDAP’ head office, Karachi. Invitation from Swiss Consulate at a reception to mark the Launching of “The Swiss Business Council” at Consulate’ office, Karachi. Meeting with Sales Manager of ICI in Association’ office, Karachi. Urgent meeting regarding Shortage of Caustic Soda in Ministry of Textile’ office, Karachi.

29.03.2008

29.03.2008

31.03.2008

04.04.2008

06.04.2008

10.04.2008 12.04.2008

12.04.2008

13.04.2008 14.04.2008 15.04.2008 15.04.2008

15.04.2008

16.04.2008 16.04.2008

25.04.2008 28.04.2008

05.05.2008

11.05.2008 11.05.2008

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12.05.2008 12.05.2008 13.05.2008

Pre-budget seminar organized in collaboration with FPCCI, Karachi. To meet Peter Courtney, Senior Country Manger,South Asia, UK Trade & Investment and Charlotte Pinder, CEO Asia House, at BDHC’ Commission, Karachi. Invitation from Consul General of Germany HE Mr. Hans-Joachim Kiderlen, for cocktail reception at his Residence, 92, A/7, Block -%, Clifion, Karachi. Invitation from Mr. M.A. Rauf Siddiqui, Minister for Industries & Commerce, Govt. of Sindh, for “ Business & Industry, Trade Convention” at Hotel Regent Plaza, Karachi. Meeting with Mr. Amir Nawab, Minister of Labour, Govt. of Sindh, at SITE Association’s office. Urgent meeting regarding Shortage of Soda Ash in Ministry of Textile’ office, Karachi. Visit of H. E. Chen Shanmin, Consul General of the People’s Republic of China at SITE Association of Industry Urgent meeting of Executive Committee of our Association, Karachi. National Conference on Tax administration reform program at Hotel Sheraton, Karachi. Meeting with Mr. Rauf A. Siddiqu, Minister of Industries, Govt. of Sindh, at SITE Association’s office. Launching Ceremony of 4th Annual Exhibition “My Karachi 2007 - Oasis of Harmony”, organized by Mr. Rauf A. Siddiqui, Provincial Minister for Labour, Transport, Industries, Commerce & Cooperation and President KCCI at Bara Dari Garden, Karachi. Reception on the occasion of 61st Anniversary of the proclamation of the Italian Republic, hosted by H. E. Domenico Benincasa, Consul General of Italy at Frere Hall, Karachi. Reception on the occasion of National Day of the Russian Federation, hosted by H. E. Mr. Vladimir Seliverstove, Karachi. Meeting on Annual Inspection Fee of Electric Inspector at Karachi Chamber of Commerce & Industry. Meeting on Trade policy at Karachi Chamber of Commerce & Industry, KCCI. Reception on the occasion of 61st Anniversary of the National day Republic of Germany, hosted by H. E Hans Joachim Kidgwn, Consul General of the Federal Republic Germany at 92-A/7,Block -5, Clifton, Karachi Meeting with IME mission team at Association’ office. Invitation to workshop on the ECO Friendly certification and Labelling Scheme at Sheraton Karachi Hotel, Karachi. E-filing seminar of Sales Tax & Federal Excise return at Association’ office, Karachi. DIG (west) Mr. Aleem Jafari at Association’ office, Karachi. Networking Gala Dinner of ITCN Asia 2007 Exhibition & Conferences, given by Dr. Ishratul-Ebad Khan, Governor of Sindh at Sindh Governor House, Karachi. Opening of new IT system of “SSGC - at SSGC Head Office, Karachi.

13.05.2008

22.05.2008

28.05.2008 29.05.2008

03.06.2008 03.06.2008 04.06.2008

05.06.2008

05.06.2008

12.06.2008

17.06.2008

17.07.2008 19.07.2008

24.07.2008 25.07.20

26.07.2008 26.08.2008 09.08.2008

12.08.2008

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01.08.2008

Reception on the occasion of the National day of Swiss, hosted by H. E Martin Bienz, Consul General of the Swiss at CBR Marriott Hotel, Karachi. Reception on the occasion of 62nd Anniversary of the Indepedence day of Indonesia , hosted by H. E Mustakim, Consul General of the Indonesia at PC Hotel, Karachi. Meeting to discuss the Trade Policy 2007-08 announced by the Government at KCCI office. Launching Ceremony of Electrical Eeergy Saving Devices by Somar International, UK at PC Hotel, Karachi. Launching Event of Women Forum, organized by 21st Century Business & Economics Club Women Forum at Hotel Avari Towers, Karachi. Dinner Reception in honor of Dr. Ishrat-ul-Ebad Khan, Governor of Sindh, given by Mian Zahid Hussain, President, Pakistan Business and Intellectuals Forum, Members of the Managing Committee and Think Tank at PC Hotel, Karachi. Inaugural Gala Dinner of 3nd Build Asia 2008 Exhibition & Conference, hosted by Ecommerce Gateway Pakistan (Pvt) Ltd., at DHA Club, K Seminar on Benazir Bhutto Shaheed Youth Development Program, Sindh Secretariat No. 1, Shahrah-e- Kamal, Karachi. E-filing seminar of Sales Tax & Federal Excise Return at FPCCI’ office, Karachi. Indonesian related Businessmen of Sindh, hosted by H. E. Mr. Hikmat Moeljawan, Consul Economic of the Republic of Indonesia at Wisma Indonesia, Karachi. Meeting with Mr. Zia-ul Hassan Khan, IGP, Sindh, at SITE Association office. Meeting on “Cluster Development Programme for SMEs in Sindh”, convened by Mr. Muslim Raza, Provincial Chief, Small and Medium Enterprise Development Authority (SMEDA) at its office, Karachi. Iftar/Dinner in honor of Karachi Based Diplomats organized by KCCI at Hotel PC, Karachi. Reception on the occasion of Day of German Unity Republic of Germany hosted by H. E Dr. Christian Brecht, Consul General of the Federal Republic Germany at 92-A/7,Block -5, Clifton, Karachi.

21.08.2008

21.08.2008 23.08.2008

25.08.2008

27.08.2008

30.08.2008

30.08.2008

01.09.2008 03.09.2008

13.09.2008 17.09.2008

18.09.2008 03.10.2008

20.10.2008 23.10.2008

Meeting with Syed Mohibullah Shah, Chief Executive, TDAP, at KCCI, KARACHI. Emergent Meeting to discuss the Energy Tariff, Load Shedding and Rising at FPCCI, KARACHI. Meeting with Martin Strähle, Project Director, bfz gGmbH, International Division Germany, at Association’ office, Karachi. Invitation from TDPA, Govt. of Pakistan to attend Expo 2008 at Expo Center, KARACHI. Meeting with Martin Strähle, Project Director, bfz gGmbH, International Division Germany, at PHMA’ office, Karachi. Invitation from Mr. Simon Williams, British Deputy Head of Mission to attend Expo 2008 at Expo Center, KARACHI.

25.10.2008

27.10.2008 27.10.2008 28.10.2008

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29.10.2008

Reception on the occasion of 85th Anniversary of the Proclamation of Republic of Turkey, hosted by H. E. Mr. & Mrs. Fethi Etem, Consul General of Turkey at Consulate’ office, Karachi. Meeting with Mr. Bettina Muller, Project Director, (SEQUA), SMEDA, at Association’ office, Karachi. Meeting on Textile Study at Textile, Commissioner’s office, Karachi. Meeting with Dr. David Monkman, Chief Executive Officer Asian Development Bank at Association’ office, Karachi. Meeting with H. E. Satyabrata Pal, High Commissioner of India’ office, Islamabad. Meeting with Marilyn Maclean Denton, Counsellor Commercial, Canadian High Commission at Canadian High’ office, Karachi. Meeting with Chairman PHMA regarding R&D CLAIMS at PHMA’ House, Karachi. Meeting with Mr. M. A. Rauf Siddiqui, Minister for Industries, Government of Sindh, at KCCI’ office, Karachi. Meeting with Governor SBP, to discuss Export Finance Scheme at Governor’ Office, Karachi. Workshop on Energy Conversation at Association’ Office, Karachi. Workshop on Alternative Energy Conversation at German Consulate’ Office, Karachi. .

30.10.2008

05.11.2008 06.11.2008

06.11.2008 06.11.2008

06.11.2008 10.11.2007

11.11.2008 11.11.2008 18.11.2008

25.

THANKS:

During the year Vice Chairman Mr. Abdul Ghaffar Essa diligently looked after the affairs of the Association in the absence of the Chairman. We are thankful to him. We are also thankful to all members of the Executive Committee and Chairmen, Advisors and the Members of the Sub Committees for their cooperation and guidance to achieve our goals to serve the Processing Industry of our Region. During the year we received positive support from the Collectors of Sales Tax and Federal Excise, Deputy Collectors, Assistant Collectors of refund sections for their cooperation in solving many issues of our Members. We also thank the Additional Commissioner of Income tax for his cooperation in solving many cases of our members with regard of zero rating Withholding Tax (WHT) on utilities bills. During the year we received tremendous support from the Press and Print Media to highlight our genuine problems. Our Press Statements were adequately covered. We thank all the TV channels and all the Newspapers for this. We are managing the Office of the Association with minimum Staff, and this is possible because of hard work and efficiency and loyalty of the existing staff, specially the Office Secretary Mr. Inam Akhtar and Assistant Secretary Mr. Waqar and Mr. Yasir Ahmed. We thank them heartily.

ANEES MOTIWALA
Regional Chairman

*********
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ACTIVITIES REPORT OF APTPMA REGIONAL OFFICE FAISALABAD REGION

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APTPMA
ANNUAL REPORT 2007-2008 FAISALABAD REGION

ALL PAKISTAN TEXTILE PROCESSING MILLS ASSOCIATION ------------------------------ Regional Office ------------------------------1st Floor Ibrahim Plaza, 213-Main Soosan Road, Opposite Care Pharmacy Madina Town, Faisalabad Ph#041-8721014-8503033, 0301-8721014 Fax#041-8736887 E-mail: taxinfo@APTPMA.com Web : www.APTPMA.com.

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OFFICE BEARERS
APTPMA-FAISALABAD REGION

MR. NAZIM SHEHZAD SHEIKH
Regional Chairman

MR. MUHAMMAD AKRAM SHEIKH
Regional Vice Chairman

ANNUAL REPORT
Written By MUHAMMAD ASHRAF Regional Secretary.

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ACTIVITIES REPORT 2007-2008 APTPMA FAISALABAD REGION
Dear Readers,
Assalam-O-Alaikum!
The Activities Report of APTPMA Faisalabad Region is being Presented hereunder for your kind perusal and good information about this office activities. The detail of the activities is very lengthy and not possible to write down every thing due to limited space in APTPMA – Annual Report 2007-2008. So only salient features of the activities are given hereunder.

PROBLEMS RELATED WITH ELECTRICITY / FESCO
FESCO office under kind direction of the chairman WAPDA has formulated an advisory committee to resolve the issues amicably, being faced by the industries.

Detail Advisory Committee of Load management, FESCO.
1. It is hereby ordered for immediate implementation by managers (Operation), Dy managers (Operation) and AMs (O) of 1st Circle and 2nd Circle FESCO to add the Name and Phone Numbers of the following members of Advisory Committee of Load Management in their mobile phone contacts as VIP; Name Khawaja Shahid Razzaq Sikka Ch. Mehmood Alam Jutt Mirza Shafiq Ahmad Waheed Khalid Ramay Mian Rehan ul Haq Mian Muhammad Ashraf Mian Aftab Ahmad Shahid Ahmad Sheikh Niaz Ahmad Sheikh Mian Shabbir Ahmad Destination President Anjuman Tajran, Genral Secretery Anjuman Tajran City Chairman Sizing Industry Faisalabad Chairman Power Looms Association President Farmers Association Secretary APTPMA Former Vice Chairman APTPMA Executive Member FCCI Executive Member FCCI Former Regional Chairman APTPMA Cell Number 0300-8662273 0322-8662273 0300-7687218 0300-8651030 0321-8666576 0300-8657433 0300-9654988 0300-6639925 0300-8663846 0300-8664191 0300-8660610 0300-8661576

S r. # 1 2 3 4 5 6 7 8 9 10

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1.

It is further advised to ensure full cooperation to these dignitaries and attend their phone calls whenever they contact. This is issued with the approval of Chief Executive Office FESCO.

2.

MINUTES OF ADVISORY COMMITTEE FESCO st Minutes of 1 Meeting of FESCO Advisory Committee held on 06.05.2008.
a. Besides Committee Members, various other Heads of the Representative Bodies of various association of Faisalabad participated in the meeting and objected the present formation of the committee. They desired that all the stakeholders / representative bodies be given nomination in the committee. Furthermore, they desired that instead of ordering by name nominations, it is better to nominate the designations. Director Operation was advised by the Convenor to redraft the Committee Order accordingly. b. The committee observed that present shortage in supply is due to non availability of Gas and non recovery of WAPDA / DISCOs dues from defaulters of other Provinces due to which Power Generation of Gas and Oil based plants is compromised. The committee desired that this observation be forwarded to Top Management of PEPCO for onward submission to Govt of Pakistan to ensure supply of Gas and Fuel to Power Plants in order to overcome the Power Generation shortage. c. The members highlighted that FESCO is charging MDI charges on 24 Hour basis to Industries, whereas, supply to Industry is ensured only for 18-19 Hours per day. They desired that MDI charges be reduced according to the Hours electricity supply is ensured. The convenor highlighted that this is a policy matter which will be taken up with PEPCO for decision at all Pakistan level. CS Director was advised to take up the matter with PEPCO. d. Various members highlighted that in City areas, FESCO feeders are running in parallel due to which a large number of consumers have managed their electricity connections from different feeders due to which they enjoy continuity of supply. Furthermore, this type of connections also compromise the ultimate achievement of load management. The committee recommended that all such connections having duplicate source of supply must be disconnected immediately or their connections be shifted on one feeder, if disconnection is not possible due to legal requirements. Director Operation FESCO was advised to immediately ensure compliance of these orders of the committee.

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e.

The committee recommended to ensure closure of shopping plazas and shopping malls during peak hours at par with the closure of Industrial Connections. The committee also persuaded the President of Anjuman Tajran to start the campaign in Faisalabad City Area for closure of such shopping centers / bazaars indiscriminately.

f.

The committee desired that all the 08 Bazaars of Faisalabad City must be closed at once during peak hours from 19-20 and then 21-22 Hours. Similar Load Shedding may also be carried out in D-Ground and Susan Road areas of Faisalabad. Director (Operation) was advised to implement.

g.

The committee after detailed deliberation on the present schedule of load shedding issued by NPCO, agreed as under; 1. All Independent Industrial Feeders be closed from18-23 hours. However, they will reduce their load by 50% for one hour afterword. 2. All Industrial dominated feeders shall be closed from 06-08 Hours in the morning and from 18-21 Hours in the evening. 3. The committee also agreed to carryout load management for 06 hours in all Rural and Urban Domestic feeders. However, supply at all Tubewell dominated feeders for six-to-eight hours, be ensured continuously during night time so as to facilitate Water Supply for Agriculture.

h.

At the end, members desired that all developments on the load position be intimated to them immediately. The schedule of this agreed load shedding program should not be changed without intimation of the committee. However, in case of emergency, an immediate meeting of the committee may be called in to discuss the new scenario. Director operation was advised to ensure implementation.

Minutes of 2nd Meeting of FESCO Advisory Committee held on 04.06.2008.
a. The share of FESCO against the total shortfall of Generation vis-à-vis total was discussed in detail. CE/Operation Director FESCO was advised by the convenor to contact GM (NPCC) to obtain figures of actual shortfall of energy in the country and the share given to FESCO in future. b. The members desired that a meeting of the committee may be planned with MD PEPCO so as to communicate the reservations of the members direct to MD PEPCO. CE/Operation Director FESCO was advised to make arrangements of meeting with MD PEPCO.

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c.

The committee desired that weekly schedule of load management be given to all members in advance for information and media coverage of load management be properly made. CE/Operation Director FESCO was advised to ensure implementation.

d.

Recently, Govt. of Pakistan has ordered for advance of clocks by one hour due to which the peak timings of the load has been changed. The committee desired that the peak timing of Industrial feeders may be shifted from 06-09 PM to 07-10 PM. CE/Operation Director FESCO was advised to implement the order immediately.

e.

The committee highlighted that recently there is improvement in FESCO system specially regarding trippings and outages but during rains and windstorms, the tripping and outages occurring can not be managed by available strength of line staff during night time. The committee desired that staff may be strengthened during windy and rainy times to respond immediately to public complaints. CE/Operation Director FESCO was advised to ensure that construction work is preferably carried out on weekly holidays of the Industrial areas.

Minutes of 3rd Meeting of FESCO Advisory Committee held on 10.06.2008.
a. The Convenor of the committee Highlighted that presently following instructions for implementation of load management program have been received from PEPCO in the light of the order of Chairman PEPCO for strict compliance. (1) Textile Feeders. Industry fed through independent / combined 11KV

Such Industries shall reduce their running load 15% during peak hours and 05% during rest of the hours in a day. No load shedding shall be carried out. (2) Power Looms. All Power Looms Industrial feeders shall be provided supply for 16 hours in a day. (3) Agriculture Tubewells. Continuous supply to Agriculture Tubewells shall be provided for 10 hours during night time. (4) Steel Furnaces etc. Steal Furnaces will closed during 1600 hours to 2400 hours.

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(5)

Flour mills & Ghee mills. This type of Industry will be provided supply for 16 hours daily with provision of two stints of 06 hours each at least in 24 hours.

(6)

All Type of Continuous Process Industries. This type of industry will reduce its load by 50% during peak hours and will reduce 15% load during rest of the hours of the day.

(7)

Commercial Markets / Areas. The commercial dominated feeders will shed load between 1900-2000 hours daily, in addition to the other periods notified by FESCO.

(8)

Other Industry fed through independent 11 KV Feeders. This type of industry will be provided supply for 18 hours with closures between 1800 to 2400 hours daily.

(9) Pre- Dominantly Industrial Feeders. This type of industry will be provided supply for 16 hours (with closures between 1600 to 2400 hours daily preferably). However, in case the domestic load is substantial, then other timings can be followed.

Minutes of 4th Meeting of FESCO Advisory Committee held on 05.07.2008.
a. The Convenor of the committee highlighted that present quota intimated by NPCC requires to give increase in one hour load management for the domestic consumers. The members discussed in detail the quota given by NPCC and observed as under; (1) There is no shortage of Gas & Oil in the country. The Government must provide Gas & Oil to the Power Plants to increase the Generation.

(2) Due to excessive rains in the country, the water level in the reservoirs is increasing day by day which requires to produce full capacity of Hydel Generation. (3) Continuous supply to Agriculture consumers be ensured for 10 hours during night time. (4) Continuous supply for 06 hours be ensured during night time for domestic consumers. (5) The load management program be implemented with complete facts intimation to the

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consumers by publishing factual positions of the load availability and shortages. (6) If situation improves regarding load availability, the industrial consumers be given preference in relief. Furthermore, continuous supply be ensured for consumers of Small Industrial States as it is dominated by processing industries. The Convenor ordered Operation Director to implement the load management program with above highlighted observations of the committee.

Minutes of 5th Meeting of FESCO Advisory Committee held on 26.07.2008.
a. The Convenor of the committee highlighted that recent increase in forced load shedding was due to non availability of oil to KEPCO Power Plant, SEPCOL and Japan Power Plant. The Gas supply was also short to the Gas Power Plants like GTPS Faisalabad. The situation was further aggravated due to low power generation of Mangla. The Convenor also highlighted that increase in forced load shedding in Faisalabad area was mainly due to over load shedding of 500KV Gatti Grid Station and Jaranwala Road Grid Station. On a question from the members, the Convenor highlighted that 500KV GattiMuzaffar Garh line is likely to be commissioned soon on 220KV to give relief to 500KV Gatti Grid Station. Technical working for commissioning of the line is being carried out and it will be commissioned as soon as Technical setting has been made. The members agitated that they were getting reports from other areas of Punjab where no forced load shedding was carried out by NPCC. They also agitated that once a feeder is closed in load management program, then the whole Gird is switched off in forced load shedding. This commonly adds to the total duration of load management either planned or forced. The members agitated this phenomenon again and again and desired that load management timing be increased but forced load shedding be avoided in all respects. The convenor highlighted that FESCO has already issued instructions to the Grid Staff that once a Grid is switched off in forced load shedding then all feeders timing of forced load shedding such as total duration of feeder closure should not increase. Operation Director was advised to ensure implementation. e. The convenor highlighted that FESCO has also raised the issue of forced load shedding with MD PEPCO and with NPCC management with the concept that once a Grid is closed in forced load shedding in a particular day that should not be closed afterward in the same day. He expressed his satisfaction that very soon NPCC management will be able to implement this consideration of FESCO.

b.

c.

d.

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Operation Director was advised to have close liaison with NPCC management to ensure implementation. f. The members agitated that during forced load shedding, the Grid staff and Operation staff is not responsive to the customers. They desired that strict instructions be issued in this regard so as to give intimation to the customers accordingly. Operation Director was advised to issue instructions on the subject and ensure that all Grid staff and Operation staff is responsive to customers. g. The members from trade union highlighted that there was an understanding with FESCO that all 08 Bazaars of Faisalabad will be closed simultaneously so that no body shall be benefited from any duplicate source of supply. He desired that following timings of the 08 Bazaars be implemented for load management; 0200 - 0300 hours 0600 - 0700 hours 1400 - 1500 hours 2100 - 2300 hours The Convenor agreed with the above mentioned schedule and ordered the Operation Director to ensure implementation. No change be brought about in the above mentioned program. h. The members agitated the discrimination in load management program which provides for continuous supply to textile spinning units. They desired that all such units be taken along with the load management as being faced by the whole of the Pakistan. The Convenor highlighted that this was implementation in the light of the orders of GoP. It will be changed immediately if any new orders are received from the GoP. i. The members highlighted that various Industrial consumers are ready for disconnection of their connections for 06 months time period but they are hesitating due to involvement of fixed charges / minimum charges. They desired that the issue may be brought to the notice of MD PEPCO for taking a decision that if an Industrial customer is disconnecting its supply on request for 06 months, then no fixed charges / minimum charges be recovered form such consumer for disconnected period and restoration of supply after 06 months be made without any charges. The Convenor agreed with the proposal and CS Director was advised to send a case to MD PEPCO. j. The members also highlighted that due to load management program, they have to run the industries during peak hours when supply is available. This forced arrangement causes the industrial units to bear heavy financial cost due to higher charges of staff during peak hour. They requested that this situation may be brought in the knowledge of MD PEPCO so as to give relief in the tariff to the industrial consumers.

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The Convenor also agreed with the proposal and CS Director was ordered to evaluate this phenomenon and send a case to MD PEPCO. The Convenor also directed the Manager (TS) to download a complete month data of few industrial consumers to evaluate the timing of TOD meters and the load utilization of these connections. Furthermore, Manager (TS) was advised to discuss whether the change of timing (One Hour Advance of clock) has been incorporated in the TOD meters on otherwise. k. The members desired that all Operation Officers be intimated about the contract number of members of the committee so as in case of need, the Operation Officers may pick up their calls. Operation Director was advised to intimate the contact numbers of committee members to the Operation Officers. l. The members also agitated that load shedding is increasing day by day but their electricity bills are also increasing. This is happening only due to over charging of units according to the needs of the AMs (O) / DMs (O). They desired that all AMs (O) / DMs (O) to direct owner / manager of the industry to be present at the time of taking readings. The Convenor agreed with the proposal and ordered Operation Director to ensure that all industrial consumers having tariff B-2 and above are informed by the AMs (O) / DMs (O) about the units to be charged in their monthly bill at the time of taking reading. m. Members from Farmers Association highlighted that in the last meeting it was decided that all tubewell dominated feeders shall be given 10 hours continuous supply during the night time. But there are Farmers' complaints from Tandlianwala, Summundri and Mamukanjan areas where such instructions are not implemented. On the query of the Convenor, the members highlighted that Shiraza, Kanjawani, Kataria, and Jhanmara feeders are some of the examples where these violations are being made. The Convenor directed the Operation Director to ensure the implementation of the decision as was made in the last meeting.

n.

One of the members also agitated similar complaint about Sheikh Colony, Al Barkat and Millat Road Feeders with examples where violation of Load Management Program was bring made by the staff. The Convenor director the Operation Director to evaluate and ensure implementation of load management program as approved.

Minutes of 6th Meeting of FESCO Advisory Committee held on 30.08.2008.
APTPMA Annual Report 2007-2008 78

a.

The Convenor of the committee highlighted that recent crisis of shortage of energy was mainly due to reduction in availability of electricity. In various Power Plants, supply of Oil and Gas remained unavailable due to which generation of electricity was compromised. NPCC had to resort to forced load shedding to save the system. The members agreed with the scenario and desired that next time if any such situation happens, immediate meeting of the committee be planned. The Convenor agreed and ordered the Operation Director to ensure implementation.

b.

The members highlighted that the Operation Officers do not attend their phone calls. They desired that their telephone numbers be circulated to all Operation Officers so as they may pick up their phones in case of contact. Operation Director FESCO was advised to circulate the names & phone numbers of members of the committee to Operation Officers.

c.

The members desired that during the month of Ramzan no construction work be carried out. The Convenor agreed and Operation Director was ordered to implement it.

d.

The members highlighted that MDI charges on monthly basis for a continuous supply of 24 Hour in a day. But due to load management of daily 4 – 6 hours, MDI charges be reduced accordingly. CS Director was advised to carryout work and put up the proposal to MD PEPCO for uniform decision at all DISCOs level.

Minutes of 7th Meeting of FESCO Advisory Committee held on 02.09.2008.
a. All B-3 consumers having independent feeders and B-4 consumers will shut down their electric installations during 07 PM to 10 PM, initially. FESCO will not provide supply to them during these hours. However in case of need, one hour extension shall be made accordingly. FESCO will disconnect the supply during these hours from its own installations (Grids / Feeders). All industrial dominated feeders will be closed during (08-10) AM in the morning and (05-07) PM in the evening. Supply to 08 Bazaars of Faisalabad and main commercial areas / roads will remain on during (07-11) PM in order to facilitate domestic consumers. However, the trade union and market union will ensure non use of Air Conditioners and reduce use of illuminating appliances during these hours. In case of violation, which will cause increasing load on the feeder, FESCO will disconnect supply from the Grid Stations.

b.

c.

APTPMA Faisalabad Region wrote a letter to the Registrar NEPRA regarding electricity tariff on the subject of :
APTPMA Annual Report 2007-2008 79

Revision/Decrease of rates of fixed charges with regard to electricity charges of the industrial establishments.
1. That the Present rates/tariff of the electricity charges are given/mentioned as under
FIXED CHARGES Rs/ KW/M VARIABLE CHARGES Rs / kWh Peak B2 B3 21-500 kW (at 400 Volts) For All Loads up to 5000 kW (at 11,33 kV) 315.00 305.00 7.04 6.79 4.28 3.88 OffPeak

Sr. No.

TARIFF CATEGORY / PARTICULARS

2. The fixed charges are charged on 24 hours/31 days basis.
3. The peak load charges are charged for the peak hours determined WAPDA. 4. As the WAPDA authorities are not providing electricity for continues 24 hours and a schedule for load shedding is officially published by the authorities for 4 to 6 hours on daily basis. Due to the above mentioned reasons, it is prayed as under, A. The fixed charges should be charged only for the time when the electricity is available to the consumers. B. The tariff for the peak hours should be converted to the normal tariff as off peak because the consumers have to run their concerns, even at peak hours to compensate the time of load shedding. APTPMA Faisalabad Region prayed, that our hardships may please be given due consideration to resolve these problems and our representatives may please be give suitable time to represent the case before the authority.

COMPARISON OF ELECTRICITY TARIF

(OLD)
APTPMA Annual Report 2007-2008 80

B-3 MDI 305 p/kw/M Total

Peak charges Rs./kwh 6.79 4.365

Off peak charges Rs./kwh 3.88

(NEW)
B-3 MDI 305 p/kw/M Total Peak charges Rs./kwh 11.90 6.90 Off peak charges Rs./kwh 5.90



INCREASE IN ELECTRICITY CHARGES w.e.f. 05-09-2008 -------------- 2.535/- kwh OR 58.075%

APTPMA Faisalabad Region wrote a letter to the Director General Regional tax office Faisalabad on the subject of:

Exemption from withholding Tax on Electricity Bills.
Regional chairman APTPMA- Faisalabad Region, brings this matter to your kind notice that FBR circular No 10 of 2008 dated August 27, 2008 has been held in abeyance vide FBR circular No.12 of 2008 dated 19.09.2008. In the light of FBR circler No.12 of 2008 dated 19.09.2008, it is now clear that no withholding tax on electricity bills would be collected from the five sectors falling under Zero Rating regime of sales Tax as Manufacturer-cum-exporter under clause 66 of the Part –IV of the 2nd schedule. It was further stated that the list of APTPMA members falling under Zero Rating scheme, had already been sent to you vide our letter No APTPMA-F/INC-TAX/2008-614 dated 19th August 2008.The soft copy of the list is provided herewith for your kind perusal and you are submissively requested that directions may please be extended to “Faisalabad Electric supply Corporation (FESCO)” for further necessary action.

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APTPMA Faisalabad Region wrote a letter to the The Chief Executive
(FESCO), on the subject of: EXEMPTION FROM WITHOLDING TAX ON ELECTRICITY BILLS UNDER CLAUSE (66) OF THE PART-IV OF THE SECOND SCHEDULE READ WITH SECTION 235 OF THE ORDINANCE IN THE CASE OF MUFACTURERS-CUM-EXPORTERS.
In continuation of this office letter No.DG/RTO/FSD/SO-II-1683 dated 18.9.2008, it is intimated that Federal Board of Revenue, Islamabad has issued Circular No.12 of 2008 (copy enclosed). Through this circular operation of circular No. 10 of 2008 whereby term “manufacturer-cum-exporter” was clarifies to mean a person whose exports for the preceding tax year constituted 80% or more of the goods manufactured by him has been suspended. As a consequence of holding in abeyance of circular No. 10, entitlement of exemption from with-holding tax on electricity bills is to be governed strictly by the provision of clause 66 of part-IV of the second Schedule to Income Tax Ordinance, 2001 which is reproduced below for ready reference and implementation in letter and spirit.

(66)

The provision of section 235” shall not be applicable to the exporters-cummanufacturers of –

(i) (ii) (iii) (iv) (v)

Carpets: Leather and articles thereof including artificial leather footwear: Surgical goods: Sports goods: and Textile and articles thereof.

APTPMA Faisalabad Region wrote a letter to The Chief Executive
(FESCO), Faisalabad. On the subject of: EXEMPTION FROM WITHHOLDING TAX ON ELECTRICITY BILLS UNDER CLAUSE (66) OF THE PART-IV OF THE SECOND SCHEDULE READ WITH SECTION 235 OF THE ORDINANCE IN THE CASE OF MUFACTURERS-CUM-EXPORTERS.
In continuation of this office letter No.DG/RTO/FSD/1779 Dated 24.09.2008, it is intimated that the matter has also been clarified by the Federal Board of Revenue, Islamabad vide para Nos. 32.2 & 32.3 of circular No. 5 of 2008 dated 05.07.2008(Copy enclosed).

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The relevant paras are reproduced below:“32.2 The provisions of sub-section (4) of section 235 of the Ordinance have been amended whereby with holding tax on bill amount upto Rs. 20,000 per month would be collected as per the existing treatment, whereas, for the bill amount exceeding Rs. 20,000 p.m. withholding tax would be collected @ 10% in respect of all commercial and industrial consumers. The tax so collected would be adjustable against final tax liability.

32.3

However, no tax on electricity bills would be collected from the following five sectors falling under zero rating regime of Sales Tax of exporters-cum-manufacturers as per provisions of clause (66) of Part IV of the 2nd Schedule to the Ordinance:

32.4 (i) (ii) (iii) Carpets: Leather and articles thereof including artificial leather footwear: Surgical goods:

(iv) (v)

Sports goods: and Textile and articles thereof

APTPMA Faisalabad Region wrote a letter to the
MANAGER (MIS), ESCO COMPUTER CENTER, FAISALABAD. On subject of:

EXEMPTION FROM WITHOLDING TAX ON ELECTRICITY BILLS UNDER CLAUSE (66) OF THE PART-IV OF THE SECOND SCHEDULE READ WITH SECTION 235 OF THE ORDINANCE IN THE CASE OF MUFACTURERS-CUM-EXPORTERS. In the light of guide line imparted by Directed General Regional Tax Office Jail Road Faisalabad vide Memo No. DG/RTO/FSD/1806 dated. 25. 09. 2008 which has also been clarified by the Federal Board of Revenue, Islamabad vide para Nos. 32.2 & 32.3of Circular No. 5 of 2008 dated 05. 07. 2008. The relevant paras are reproduced below:-

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“32.2 The provisions of sub-section (4) of section 235 of the Ordinance have been amended whereby with holding tax on bill amount upto Rs. 20,000 per month would be collected as per the existing treatment, whereas, for the bill amount exceeding Rs. 20,000 p.m. withholding tax would be collected @ 10% in respect of all commercial and industrial consumers. The tax so collected would be adjustable against final tax liability.

32.3

However, no tax on electricity bills would be collected from the following five sectors falling under zero rating regime of Sales Tax of exporterscum-manufacturers as per provisions of clause (66) of Part IV of the 2nd Schedule to the Ordinance: (i) (ii) Carpets: Leather and articles thereof including artificial leather footwear: (iii) (iv)
(iv)

Surgical goods: Sports goods: and
Textile and articles thereof.

In view of above, withholding tax assessed for the months 07/08, 08/08 & 09/08 in billing month 09/2008 against above listed five sectors falling under zero rating regime of Sales Tax of Exporters-cum-Manufacturers as per provision of clause(66) of the part-IV of the Second Schedule Ordinance be adjusted from the billing month 09/08 so as to avoid undue reflection of arrears in the monthly financial returns of 09/08. The due date of MDI batch in case of Industrial consumers be also treated as 30th Sep. 2008.

APTPMA Faisalabad Region wrote a letter to the

THE MEMBERS
APTPMA- Faisalabad Region on subject of

Exemption from withholding Tax on Electricity Bills.
Reference to above cited subject, It is to state, this Association “APTPMA” has been trying to resolve the issue of withholding Tax. Now the Federal Board of Revenue (FBR), Islamabad has issued S.R.O. 1055(1)/2008 dated: 10th October 2008. where by, the withholding tax has been exempted from electricity bills of Textile sector. This is infact, in the result of the best

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efforts by MR. SHABBIR AHMED “chairman APTPMA standing committee for Electricity & GAS”, who has left no stone unturned to achieve this success in this regard. MR. NAZIM SHEHZAD SHEIKH Regional Chairman APTPMA, sent a copy of said S.R.O. to the member units.

CLEANER TECHNOLOGY PROGRAM FORTEXTILE (CTPT)
Programme for Industrial Sustainable Development (PISD)
Cleaner Technology Program for Textile Industry (CTP Textile), an initiative of Royal Netherlands Embassy in Pakistan (RNE) and Cleaner Production Institute (CPI), has been working since 2004 under the umbrella of APTPMA. This project is designed to enable textile processing industry of Pakistan to be legally compliant and resource efficient. Formally CTP was completed in August 2007. RNE has converted it into the Programme for Industrial Sustainable Development (PISD). CTP Textile phase I (2004-2007) was one of the successful projects of RNE. The success can be bulleted as: o o o Project completed 100% of its target outputs Mobilized 63 textile mills for the investment in cleaner and energy efficient technologies Investment of Rs. 71.6 million was made by the mills till August 2007 in the implementation of cleaner technologies Investment of Rs. 118.7 million was

planned in the implementation of cleaner technologies in future by the mills. o o o Overall total investment of Rs. 123 million, including wastewater treatment plants and cleaner technologies, was made by the mills Total planned investment, including wastewater treatment plants and cleaner technologies, was Rs. 632 million Textile mills achieved total savings of Rs. 209 million per year against the investment of Rs. 71.6 million

The objective of PISD is to enable the major industrial sectors of Pakistan to comply with the national and international environmental requirements and to adopt better energy efficiency practices. Starting on July 01, 2007, the programme initially aims to serve the Sugar, Pulp & Paper, Textile Processing, and Leather sectors of Pakistan.

THE NEED FOR PISD:
PISD has been initiated in response to some major challenges being faced by the Pakistani manufacturing industry. • Businesses are globally responding to consumer preferences for ecologically friendly production. The future of industry everywhere depends on how it competes and complies

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with the existing accredited environmental standards and buyers’ demands. The answer, world over, is Cleaner Production. • Environment related economic loss accounts for an estimated 3-4% of GDP. Discharge of untreated liquid effluent – only 1% being currently treated - is one of the major industry related environmental issues. Rigorous wastewater treatment is required to curtail potential market share losses of the Pakistani industry and to comply with NEQS. The manufacturing industry is the largest consumer of commercial energy. Energy efficiency opportunities exist in almost the entire industrial sector of Pakistan, with an estimated energy saving potential of 22% without any loss in production.



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86



Implementation of Environmental Management System (EMS) and ISO 14001 certification is not only a requirement of international markets, but has also proved to bring in many higher order productivity and growth benefits. Corporate Social Responsibility (CSR) has become an imperative image building tool to progressive businesses through out the world. Pakistani industry, however, yet to fully realize the significance of CSR and apply the essence of this concept to its strategic advantage.



PROGRAMME COMPONENTS:
Following component projects are being executed under PISD: 1. Introduction of Cleaner Technologies in Punjab Tanneries (ICTP) - a continuation of “Energy Development Programme for Punjab Tanneries (EDP)” of Pakistan Tanners Association-Northern Zone (PTA-NZ). ICTP offers services to tanneries in energy efficiency, environmental improvement, and/or strengthening their existing initiatives. 2. Cleaner Technology Project for Korangi Tanneries (CTP-KT) - an on-going project of the Pakistan Tanners Association-Southern Zone (PTA-SZ), having implemented Cleaner Technologies in over 100 tanneries. In view of the constant increase in demand for the project services, PTA (SZ) has decided to deliver its contractual output and at the same time extend the services to all Karachi-based units under PISD. It also includes development of institutional framework for the sustainable management and operations of Combined Effluent Treatment Plant, to serve as the guiding system for the future CETPs in Pakistan. 3. Cleaner Technology Project for Textile Industry (CTPT) – Phase II of a recent APTPMA-CPI project with the same name. After the Phase I of project achieved most of its targets in over 100 textile units during 2004-07, an extensive nationwide survey identified ‘continued support on environment’ and ‘wider focus on energy’ as the major areas where textile processing industry requires technical assistance. Hence CTPTPhase II is included in PISD. 4. Cleaner Technology Project for Sugar Industry (CTPS) – to support the Sugar sector during its restructuring phase due to the increased demand for ethyl alcohol in international markets. CPI would work in close liaison with the Pakistan Sugar Mills Association (PSMA) to help the sugar sector improve its overall performance, especially in the areas of Cleaner Technology and Energy Efficiency. 5. Cleaner Technology Project for Pulp and Paper Sector (CTPP) – to facilitate

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87

paper mills in energy efficiency practices, maintaining control on pollution loads, and improving environmental performance. Pakistan Pulp, Paper and Board Mills Association (PPPBMA), a representative association of the sector, is working in close partnership with CPI for the implementation of CTPP. Cleaner Production Institute (CPI) is executing PISD in collaboration with sector-specific Industry Associations of textile, leather, sugar and paper.

PISD PROGRAMME SERVICES
Under PISD, major activities and services, to be offered free of cost to the industry, include:

1. Dissemination and Communication: o Seminars, Workshops, Brochures, Posters, Leaflets and Website for raising awareness about cleaner and energy efficient technologies. Awareness and capacity building of the industry about environment, energy, cleaner production, concerned legal issues and their solutions. Effective role of industrial associations to serve as facilitator on these issues Training of industry personnel on Cleaner Production Technologies, Energy Efficiency, Wastewater Treatment Technologies, Environmental Management System (EMS) and ISO 14001 Certification. Integrated environmental & energy audits and action plans. Implementation of Cleaner Production Technologies. Implementation of Energy Efficient Technologies. Environment and energy reports. Designing and implementation of Wastewater Treatment Plants. Development of EMS manual. Implementation of EMS. ISO 14001 Certification. CSR Reports of selected Industrial Units

2. Institutional Development: o o o

3. Training and Human Resource Development:

4. Cleaner Technologies and Energy Efficiency: o o o o o o o o o

5. Wastewater Treatment Plants: 6. Environmental Management System and Certification:

7. Corporate Social Responsibility (CSR): 8. Cleaner Production and Energy Efficient Technologies and WWTP Performance Reports: o Performance reports for various technology interventions.

TEAMS IN PISD:
Ten PISD teams are working in Karachi, Lahore and Faisalabad in the five projects.

WHO CAN JOIN PISD?
The industrial units meeting the following criteria are eligible to benefit from the services available under the programme: 1. Are members of collaborating associations of the sector (APTPMA for Textile etc.) or are willing to become so. 2. Show verifiable interest in mobilizing human and capital investments for successful

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88

implementation of PISD suggested solutions. 3. Are nominees of the Steering Committee of the collaborating association working in liaison with PISD.
S.#

CTP‐ Textile List of Partner Industries
Name of Textile Unit

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Hilal Textile Corporation (Pvt) Ltd The National Silk and Rayon Dyeing Mills Ltd Al-Habib Dyeing Hussain Dyeing and Printing Industries (Pvt) Ltd. Bashir Printing Industries Pvt. Ltd. Noor Fatima Fabrics Pvt. Ltd. Aftab Textile Industries Ahmad Textile Industries Saeed Fabrics (PVT) LTD Rashid Textile Printing Industries Pvt. Ltd. Latif International (Pvt.) LTD Habib Fabrics A.H.K Textile (PVT). LTD. Al-Hamara Textile industries (Pvt) Ltd. Ittehad Textile Industries (PVT) LTD Arif Textiles (Pvt) Ltd Al-Farid Fabrics (Pvt) Ltd. Mujahid Textile industries (Pvt) Ltd Sahib Textiles (Pvt) Limited Sitara Textile Industries Limited Abdur Rahman Corporation (Pvt) Limited Al Karim Industries (Pvt) Ltd Milli Textiles (Pvt) Ltd. Dawood Textile Printing Ind. (Pvt) Ltd. Dawood Exports (Pvt) Ltd Five Star Textile Industries (Pvt) Ltd Kausar Textile Industries (Pvt) Ltd Al-Karam Processing Mills (Pvt) Ltd Nishat Mills Limited Kamal spinning Mills Aala Processing Industries (Pvt) Ltd Kamal Hosiery Mills Arshad Corporation (Pvt) Ltd Ghousia Bleaching Plant

APTPMA Annual Report 2007-2008

89

35 36 37 38 39 40 41 42 43 44 45
46 47 48 49 50 51 52

Golden Facility Textile Al-Jannat Textile Industries Faisal Fabrics Ltd. Al-Rehmat Traders Ittemad Textile (Pvt) Ltd Firdous Cloth Mills (Pvt) Ltd. Gulzar Dyeing Works Sadaqat Textile Mills (Pvt) Limited Noor Fatima Textile Processing Industries (Pvt) Ltd M.K. SONS Private Limited Bismillah Textile Ltd. Gohar Textile Mills (Pvt) Ltd. Chenab Ltd. Interloop (Pvt) Ltd. Masood Textile Mills Ltd. MSC Textile (Pvt) Ltd Orient Coating and Finishing Industries Crescent Textile

APTPMA TARGETS 2007-08
Up Gradation of the Association “APTPMA”
Office Renovation Installation of Telephone Exchange Appointment of Telephone Exchange Operator Designing of Website APTPMA-Faisalabad Region

SUB - COMMITTEES APTPMA - FAISALABAD REGION
As everybody knows, the Textile Processing Industry is under crises and is facing the problems concerned with different departments. Therefore, to resolve the issues, the following sub committees of APTPMA – Faisalabad Region, is formed by the Regional Chairman “Mr. Nazim Shehzad Sheikh” which were approved by the executive committee of Faisalabad sRegion held on 25th February 2008 at Serena Hotel, Faisalabad.

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90

SALES TAX & INCOME TAX
1- Mr. Muhammad Saeed Sh. M/s Rasheed Textile Ind. (Chairman) (Ph#041-8868035-Mob#0321-8660387) 2- Mr. Ajmal Farooq Mian M/s Noor Fatima Fabrics (Member) (Ph#041-8754633-Mob#0300-8652222) 3- Mr. Abdul Samad Sheikh M/s S.A Samad & Company (Member) (Ph#041-8869283-Mob#0301-8658483) 4- Mr. Rao Saif-ur-Rehman M/s Milli Textiles (Member) (Ph#041-8869639-Mob#0300-8663481)

GAS & ELECTRICITY
1- Mr. Shabbir Ahmed
Mob#0300-8661576)

M/s Bashir Printing Industry.

(Chairman)

(Ph#041-8868276(Ph#041-8722143, (Ph#041-8754633(Ph#041-8777379-

1- Mr. Aftab Ahmad Mian
Mob#0300-8663846)

M/s Hilal Textile Corporation (Member) M/s Noor Fatima Fabrics M/s Fateh Textile ind. (Member) (Member )

2- Mr. Ajmal Farooq Mian
Mob#0300-8652222) 3- Mr. Abdul Rehman Mob#0300-8661637)

ENVIRONMENT
1- Mr. Muhammad Akram Sheikh. M/s Al Habib Dyeing
8717165-Mob#0300-6621560)

(Chairman) (Member)

(Ph#041(Ph#041(Ph#041(Ph#041-

2- Mr. Ajmal Farooq Mian
8754633-Mob#0300-8652222)

M/s Noor Fatima Fabrics

3- Mr. Nisar Ahmed Sheikh
8714935-Mob#0321-9668738)

M/s Hussain Dyeing & Printing Ind. (Member) M/s Insaf Textile Printing (Member)

4- Mr. Abul Rouf Mian
8718157-Mob#0300-8663008)

WASA
1- Mr. Muhammad Ahmed Sheikh
774,-Mob#0300-8664774)

M/s Ahmad Textile Ind. M/s Al Habib Dyeing M/s Al-Karm Processing M/s Mujahid Textile Ind.

(Chairman) (Member) (Member) (Member)

(Ph#041-111-664(Ph#041(Ph#041(Ph#041(Ph#041-

2- Mr. Muhammad Akram Sheikh.
8717165-Mob#0300-6621560)

3- Mr. Muhammad Saeed Sheikh.
8541614-Mob#0300-8666936)

4- Mr. Babar Hanif Mian
8719146-Mob#0300-8650651)

5- Mr. Muhammad Akram
8787012-Mob#0300-8653426)

M/s Shoaib Usman Textile ind. (Member)

SOCIAL SECURITY, LABOUR, EOBI
1- Mr. Nisar Ahmed Sheikh
8714935-Mob#0321-9668738)

M/s Hussain Dyeing & Printing Ind. (Chairman) M/s M.A Textiles. M/s Aala Processing Ind. (Member) (Member)

(Ph#041(Ph#041(Ph#041(Ph#041-

2- Mr. Rizwan Ashraf
8543347-Mob#0300-9661234)

3- Mr. Murtaza Nazir Ch
8727321-Mob#0300-8660938)

4- Mr. Ghulam Rasool Sheikh
8868737-Mob#0300-8651534)

M/s Dawood Textile Printing Ind. (Member)

PUBLIC RELATIONS
APTPMA Annual Report 2007-2008 91

2- Mr. Ajmal Farooq Mian
8754633-Mob#0300-8652222)

M/s Noor Fatima Fabrics M/s Hilal Textile Corporation M/s Zam Zam Textile Ind. M/s Milli Textiles

(Chairman) (Member) (Member) (Member) (Member (Member)

(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041-111-664(Ph#041(Ph#041-8720103(Ph#041-

3- Mr.Aftab Ahmed Mian
8722143, Mob#0300-8663846)

4- Mr. Habib Ahmed
8724537-Mob#0300-8661272)

5- Mr. Rao Saif-u-Rehman
8869639-Mob#0300-8663481) 8868035-Mob#0321-8660387)

6- Mr. Muhammad Saeed Sheikh M/s Rasheed Textile Ind. 7- Mr. Shabbir Ahmed
8868276-Mob#0300-8661576)

M/s Bashir Printing Industry.

8- Mr. Ghulam Rasool Sheikh
8868737-Mob#0300-8651534)

M/s Dawood Textile Printing Ind. (Member) M/s Golden Facility textile M/s Al-Farid Fabrics. M/s Ahmad Textile Ind. M/s Fateh Textile ind. M/s Moti Fabrics (Member) (Member) (Member) (Member ) (Member )

9- Mr. Muhammad Shahzad Sh.
8728897-Mob#0300-8666798)

10- Mr. Zahoor Ilahi Rana
8861071-Mob#0321-8666613)

11-Mr. Muhammad Ahmed Sh.
774,-Mob#0300-8664774)

12- Mr. Abdul Rehman 8777379-Mob#0300-8661637) 13- Mr. Faisal Rashid
5 Mob#0321-8660555)

14- Mr. Kashif Tauheed Mian
8530235-Mob#0300-8662676)

M/s The National Silk & Rayon Mills ltd. (Member )

APTPMA REGIONAL OFFICE ACCOUNTS
1- Mr. Muhammad Saeed Sheikh
8868035-Mob#0321-8660387)

M/s Rasheed Textile Ind. M/s Noor Fatima Fabrics

(Chairman) (Member )

(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041-

2- Mr. Ajmal Farooq Mian
8754633-Mob#0300-8652222)

3- Mr. Shabbir Ahmed
8868276-Mob#0300-8661576) 8717165-Mob#0300-6621560)

M/s Bashir Printing Industry. (Member) (Member)

4- Mr. Muhammad Akram Sheikh. M/s Al Habib Dyeing 5- Mr. Nisar Ahmed Sheikh
8714935-Mob#0321-9668738)

M/s Hussain Dyeing & Printing Ind. (Member)

ESTABLISHMENT APTPMA REGIONAL OFFICE
1- Mr. Aftab Ahmad Mian
8722143, Mob#0300-8663846)

M/s Hilal Textile Corporation (Chairman) M/s Ittehad Textile Ind. M/s Noor Fatima Fabrics M/s Habib Fabrics M/s Rasheed Textile Ind. M/s Latif Exports (Pvt) Ltd. M/s Milli Textiles (Member) (Member) (Member) (Member) (Member) (Member)

(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041-

2- Mr. Nazim Shahzad Sheikh
8721875-Mob#0300-8656969)

3- Mr. Ajmal Farooq Mian
8754633-Mob#0300-8652222)

4- Mr. Khalid Habib Sheikh
8545612, Mob#0300-8663851)

5- Mr. Muhammad Saeed Sheikh
8868035-Mob#0321-8660387)

6- Mr. Abdul Latif Mian
8714230, Mob#0300-8667555)

7- Mr. Rao Saif-u-Rehman
8869639-Mob#0300-8663481)

APTPMA Annual Report 2007-2008

92

8- Mr. Habib Ahmed
8724537-Mob#0300-8661272)

M/s Zam Zam Textile Ind. M/s Bashir Printing Industry. M/s Kausar Processing Ind.

(Member) (Member) (Member)

(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041-111-664(Ph#041-

9- Mr. Shabbir Ahmed
8868276-Mob#0300-8661576)

10- Mr. Muhammad Saeed Sheikh
4361822-Mob#0301-8666136)

11- Mr. Ghulam Rasool Sheikh
8868737-Mob#0300-8651534)

M/s Dawood Textile Printing Ind. (Member) M/s Al-Hamra Textile Ind. M/s Al-Farid Fabrics. (Member ) (Member) (Member) (Member)

12- Mr. Mr. Amjad Javid 8729188-Mob#0300-8666088)
8861071-Mob#0321-8666613)

Sheikh.

13- Mr. Zahoor Ilahi Rana
774,-Mob#0300-8664774)

14- Mr. Muhammad Ahmed Sheikh M/s Ahmad Textile Ind. 15-Mr. Muhammad Amir Mian
8718441-Mob#0300-8668669)

M/s Five Star Textile Ind.

FOREIGN VISITS DELEGATION
1- Mr. Amir Riaz Sheikh
8868414-Mob#0300-8666665)

M/s Al-Noor Processing

(Chairman )

(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041-

2- Mr. Faisal Rashid
8869011-Mob#0321-8660555)

M/s Sargodha Cloth Processing ind. (Member ) M/s Fateh Textile ind. Sheikh. M/s Al-Hamra Textile Ind. (Member ) (Member )

3- Mr. Abdul Rehman 8777379-Mob#0300-8661637) 4- Mr. Mr. Amjad Javid 8729188-Mob#0300-8666088)
8530235-Mob#0300-8662676)

13- Mr. Kashif Tauheed Mian

M/s The National Silk & Rayon Mills ltd. (Member )

RATE MONITORING OF TEXTILE PRINTING
1- Mr. Abdul Rehman Sheikh
Mob#0300-8667161) 8868035-Mob#0321-8660387)

M/s Fateh Textile Industries

(Chairman ) (Member)

(Ph#041-8777379, (Ph#041(Ph#041(Ph#041-8535936, (Ph#041-8868864(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041-8869678 (Ph#041-

2- Mr. Muhammad Saeed Sheikh M/s Rasheed Textile Ind. 3- Mr. Ghulam Rasool Sheikh
8868737-Mob#0300-8651534)

M/s Dawood Textile Printing Ind. (Member) M/s United Textile Printing Ind. (Member) M/s Muslim Textile Ind. (Member) (Member) (Member) (Member) (Member) (Member)

4- Mr. Muhammad Naeem Mian
Mob#0321-8661336)

5- Mr.Sultan Mahmood
65 Mob#0300-8664930) 8541614-Mob#0300-8666936)

6- Mr. Muhammad Saeed Sheikh. M/s Al-Karam Processing 7- Mr. Shabbir Ahmed
8868276-Mob#0300-8661576) 8863911 Mob#0300-8667629)

M/s Bashir Printing Industry.

8- Mr.Muhammad Binyamin Ch. M/s Al-Kareem Industries. 9- Mr. Riaz Ahmed Sheikh
8812221-26, Mob#0321-8669887)

M/s Al-Noor Processing M/s Ali Processing

10- Mr. Shaukat Ali
8737775, Mob#0300-8654950)

11- Mr. Muhammad Akram
8787012-Mob#0300-8653426)

M/s Shoaib Usman Textile Ind. (Member) M/s Yasir Afzal Textile Ind (Member)

12- Mr. Muhamad Umar Afzal
Mob#0300-8657566)

13- Mr. Zia-ul-Qamar
4362283-84 Mob#0321-8669531)

M/s Image Textile (Ashraf Zia) (Member)

APTPMA Annual Report 2007-2008

93

RATE MONITORING OF TEXTILE DYEING PROCESSING
1- Mr. Muhammad Mob#0321-6622113)
32, Mob#0321-6605777)

Yasin

M/s Al-Haram Textile Industries (Chairman ) M/s Sahib Textile M/s Sargodha Cloth Processing M/s Moti Fabrics M/s Shaheen Dyeing M/s Al-Farid Fabrics. (Member ) (Member ) (Member ) (Member ) (Member) (Member) (Member) (Member) (Member) (Member)

(Ph#041-8586999, (Ph#041-8869131(Ph#041-8869011(Ph#041-8720103(Ph#041-8714501 (Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041-

2- Mr. Muhammad Ali 3- Mr. Muhammad 12, Mob#0321-8666866)
5 Mob#0321-8660555)

Asif

4- Mr. Faisal Rashid 5- Mr. Shakeel Ahmed Sheikh
Mob#0300-8661124)

6- Mr. Zahoor Ilahi Rana
8861071-Mob#0321-8666613) 8727321-22-Mob#0300-8660938)

7- Mr. Murtaza Nazir Chaudhary M/s Aala Processing Ind. 7- Mr. Muhammad Younas
8810555, Mob#0333-6511992)

M/s Mehrban Fabrics M/s Master Textile Processing M/s Bhatti Fabrics M/s Zam Zam Textile Ind.

8- Mr. Ashiq Ali Qamar
8869716-17, Mob#0300-6623816)

9- Mr. Shahzad Ahmed
8718735, Mob#0321-9666501)

10- Mr. Habib Ahmed
8724537-Mob#0300-8661272)

CAUSTIC SODA.
1- Mr. Mr. Amjad Javid Sheikh.
8729188-Mob#0300-8666088)

M/s Al-Hamra Textile Ind. M/s Bashir Printing Industry.

(Chairman ) (Member) (Member ) (Member)

(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041-

2- Mr. Shabbir Ahmed
8868276-Mob#0300-8661576) 8868035-Mob#0321-8660387)

3- Mr. Muhammad Saeed Sheikh M/s Rasheed Textile Ind. 4- Mr. Ajmal Farooq Mian
8754633-Mob#0300-8652222)

M/s Noor Fatima Fabrics

5- Mr. Ghulam Rasool Sheikh
8868737-Mob#0300-8651534) 8717165-Mob#0300-6621560)

M/s Dawood Textile Printing Ind. (Member) (Member) (Member ) (Member )

6- Mr. Muhammad Akram Sheikh. M/s Al Habib Dyeing 7- Mr. Abdul Rehman
8777379-Mob#0300-8667161)

M/s Fateh Textile ind. M/s Moti Fabrics

8- Mr. Faisal Rashid
8720103-5 Mob#0321-8660555)

RATE MONITORING OF TEXTILE DYEING BLENDED FABRICS.
1- Mr. Muhammad Akram Sheikh. M/s Al Habib Dyeing
8717165-Mob#0300-6621560)

(Chairman) (Member) (Member)

(Ph#041(Ph#041(Ph#041-

2- Mr. Habib Ahmed Chaudhary M/s Zam Zam Textile Ind.
8724537-Mob#0300-8661272)

3- Mr. Abdul Samad Sheikh
8869283-Mob#0301-8658483)

M/s S.A Samad & Company

APTPMA Annual Report 2007-2008

94

4- Mr. Khalid Habib Sheikh
8545612, Mob#0300-8663851)

M/s Habib Fabrics M/s Al-Farid Fabrics.

(Member) (Member) (Member) (Member ) (Member ) (Member ) (Member ) (Member ) (Member ) (Member ) (Member ) (Member )

(Ph#041(Ph#041(Ph#041(Ph#041-8714501 (Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041(Ph#041-

5- Mr. Zahoor Ilahi Rana
8861071-Mob#0321-8666613) 8727321-22-Mob#0300-8660938)

6- Mr. Murtaza Nazir Chaudhary M/s Aala Processing Ind. 7- Mr. Shakeel Ahmed Sheikh
Mob#0321/0300-8661124)

M/s Shaheen Dyeing M/s Al-Mumtaz Textile Ind. M/s Naveed Munir Dyeing M/s Master Ind. M/s New Al-Riaz Fabrics M/s Bhatti Fabrics

8- Mr. Muhammad Dawood
8862928 Mob#0300-8652039)

9- Mr. Munir Ahmed Sheikh
8725002 Mob#0300-8652042)

10- Mr. Abdul Qayyum
8538816 Mob#0321-6626616)

11- Mr. Shahbaz Ahmed
8532124 Mob#0300-9666501)

12- Mr. Shahbaz Ahmed
8718835 Mob#0300-8656575)

13- Mr. Abdul Hamid
8784911 Mob#0322-7639734)

M/s Fazal Dyeing & Fainshing M/s Ali Akbar Hayat Textile ind. M/s Sajid Rehman Textile

14- Mr. Azhar Ali
5003051 Mob#0300-6639313)

15- Mr. Zulifqaar Ali Shah
8718874 Mob#0300-9669784)

PRESS RELEASE & PRESS CONFRENCE
Press Release on 29 - 01 – 2008

APTPMA – Faisalabad Region issued from time to time a number of press releases and held press conference to resolve the problems being faced by Textile Processing Industry. The detail of these press release is mentioned hereunder for your kind perusal. These press releases show the efforts made by Faisalabad Regional office.

Detail of press conference on 27–01-2008
One hundred units have been completely closed due to Gas load shedding and remaining units will also be closed if Government doesn’t take quick action in favour of Textile Industry. 1.5 million people are afflicted with starvation due to unemployment of 3 lac workers. If the Gas becomes short then Government / SNGPL Company with consultation of our Association APTPMA, should make a schedule convenient to textile processing industry. This was stated by Mr. Nazim Shehzad, Regional Chairman APTPMA. The unscheduled Gas load shedding will create a panic in public and jobless workers will be compelled to adopt uncivil and criminal activities like snatching, robbery and kidnapping for randsome. The Regional Chairman APTPMA criticized Government policy to issue the licenses for setting up CNG stations in bulk number without realizing about shortage of Gas in Pakistan. He further stated, the Government should provide uninterrupted Gas supply to the industry which is the back bone of textile industry the textile processing sector being value added and export oriented industry. Thousands of stake holders accompanied with the workers, are about to decide to launch the rallies on the roads as protest against unscheduled Gas load shedding, but Governor Punjab Mr. Khalid Maqbool requested the stake holders to postpone agitation and he promised to resolve this serious issue. The Regional Chairman “Nazim Shehzad “ has appealed to the General Manager SNGPL Faisalabad to take the decision independently about the issues concerned at local level. He further told the buyers of foreign countries ask the industrialists engaged in manufacturing the textile articals about last date of delivery of the goods to be exported, but exporters are helpless to give them final date of

APTPMA Annual Report 2007-2008

95

delivery which is a burning issue and alarming signals not for only the textile manufacturers but the Government also because the buyers are rapidly chasing their directions and are focusing the neighbor countries to import the textile goods.

Second Press Conference
The second press conference was held on 06-02-2008 at Dynasty Hotel about unscheduled Gas load Shedding issued the press release about complete closure of textile industry in Faisalabad. The Regional chairman Mr. Nazim Shehzad Sheikh had earnestly requested the Government not to treat textile processing industry as step mother. He informed that 120 containers were previously cleared by Faisalabad Dry port now it has become 70 containers only and dangerous situation has been developed for exporters. He has further agitated on ignorance of those industry by the Government which is a major source of earning foreign exchange. The industrialist proposed the Government to give subsidy on furnace oil which is alternate of Gas that is major raw material of textile processing industry. The stake holders have announced inability to pay the salaries to the workers during closur of the textile industry for last one month. They appealed to the Government to restore immediately the supply of Gas to textile industry otherwise we shall compelled to hold strike in the city.

Press Release on 27-02-2008
Textile processing industry has victimized to financial crises as well as unemployment of the workers in lacs due to short of production in factories which adverse effect due to unscheduled Gas load shedding. The textile industry seems to be disappearing from Pakistan specially in Faisalabad. This exercise will give bad effect to national economy. Mr. Nazim Shehzad Sheikh, Regional Chairman APTPMA stressed upon this matter that as textile processing industry is in sever crises now-a-days, so we have to give strength to this Association and to make very active to resolve our problems. We will fight with the challenges which we have to face. We will have to make a comprehensive policy and to submit it to the Government to promote this industry.

Press Release on 03-03-2008
Existence of Textile Processing Industry is on risk due to increase in prices of Electricity and oil. It has been stated by Mr. Nazim Shehzad Regional Chairman APTPMA in his press release. The poverty graph will come down rapidly if the prices of oil, gas and electricity are subsidized to a reasonable limits. He further stated that Textile Processing Industry has recently faced heavy financial crises during three months i-e December 2007, January & February 2008 due to shut down of Gas supply and now after this crises, the Government has increased the rates of electricity and oil and all the commodities will definitely be affected by this increase. The cost of doing business of textile will also be increased and it will adversely affect our production for export as well as local goods. Purchasing power of every person will also be come to an end. Resultantly, unemployment will be forced to increased which is dangerous for law & order situation. Increasing of cost of textile commodities, the buyers as importers will contact the neighbor countries. In the light of the situation prevailed in the country, Regional Chairman has appealed to the Government to announce relief package to the Textile Processing Industry. APTPMA Faisalabad Regional office advertise an advertisement which context is as under.

APPEAL
123Sayyed Yousaf Raza Gailani Mian Muhammad Shehbaz Chaudhary Ahmad Mukhtar Prime Minister of Islamic Republic of Pakistan Chief Minister Punjab Federal Minister for Textile Industry

APTPMA Annual Report 2007-2008

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As your excellency knows that Textile Processing Sector having value addition is back bone of textile industry and is getting heavy foreign exchange by export of textile goods. This industry plays an important role to give strength to the national economy by generating the revenue in billions and or other side this industry has given jobs to the workers in millions. We regretfully mention here that this industry is now being seriously affected by increase in the rates of electricity and oil by the Government. All the members of APTPMA-Faisalabad Region, appeal to the Excellencies as 1. Proposed Summery for increasing the rate of Gas by OGRA may please be withdrawn. The Government may announce a relief package for textile processing industry that will be proved as oxygen and last straw to drowning man, for this textile sector. Textile Processing Industry is a continuous process therefore, the supply of the electricity to this industry for 24 hours, may please be assured. As it has come to our knowledge that 1500 MW production of electricity has been increased, so we further request the Government that electricity may please be provided to FESCO as per its share and no load shedding may be exercised in excess of its scheduled quota.

2.

Press Release regarding WASA issues Released on 18th April 2008
The factory owners pay six lac monthly for cleanliness of sewerage system at Maqbool Road, Samundary Road and its surroundings. The units in Faisalabad pay WASA sewerage bills with 700 % excess from the rates imposed in other industrial cities. WASA is also recovering an other tax i-e – Aquifer charges from Faisalabad units which shows high handedness of WASA Faisalabad while in other industrial city it is not recovered. Inspite of all these, the units in Faisalabad have been facing the problems for last many years. APTPMA members have given more then seven (7) crore rupees to WASA with regard to clean WASA sewerage system. Most of WASA jobs like repairing the heavy motors as well as maintenance of WASA disposal stations has been done by APTPMA member units engaged in textile processing at different places. WASA staff is getting very handsome salaries but out put is nil. Public of this city has proposed that WASA may be privatized so that WASA services could be improved. It was stated by Nazim Shehzad Sheikh, Regional Chairman APTPMA, during a press conference. He further stated that textile processing units located at Maqbool Road remain closed for Sixty (60) hours in a week. In this situation, how production can be ensured ? Special gangs of WASA staff demand "monthlies" from the units and they intentionally manage to block the sewer system so that sewer water may come to the roads. These special gangs blackmail to industrialists and get heavy amounts for removal the issues of overflow. MD WASA stated that WASA staff is not able to perform their duties honestly and perfectly. The District Nazim Faisalabad has also dismissed two WASA officers due to their negligence and irresponsibility. The Regional Chairman APTPMA added that it is the duty of WASA staff to clean WASA sewerage system and to keep all WASA disposal stations hundred percent correct and in working order. APTPMA Chairman proposed that WASA and District Government should lay in new sewerage lines for industrial sewer as well as domestic purpose and these should be separate. These jobs should be started immediately and may be completed in very short period. He pointed out WASA disposal station specially at Satiana Road has need to be up graded and pumps alongwith their suctions must be replaced without any delay, but these pending jobs have not been executed by WASA and the authority is ignoring for last many years. Regional Chairman stated, if WASA staff do their job honestly, the city Faisalabad can remain clean and beautiful.

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Press Release regarding WASA issues Released on 26th April 2008
The city District Nazim, Mr. Zahid Tauseef Rana, issued the orders for expeditious completion of WASA projects which are under construction. An important meeting was held under the chair of City District Nazim to resolve the issues related with environment. Mr. Nazim Shehzad Sheikh, Regional Chairman APTPMA represented textile processing industry. He elaborated the problems being faced by APTPMA member units which are related with WASA. The City District Nazim and MD WASA realize the problems of APTPMA members. They visited WASA disposal station at Satiana Road to check working position and point out the deficiency to be removed for up gradation the disposal station. During the joint visit it had been decided that new pumps will be installed and suctions will also be replaced. These two jobs will immediately be by WASA. The District Nazim emphasized adherence to weekly closure honestly.

Press Release regarding Gas, Electricity & oil Released on 3rd July 2008
Textile processing sector is on the verge of complete closure due to increase in prices of Gas, Electricity & oil. Government should give relief to this value added industry to promote textile processing sector but the prices of oil, Electricity and specially Gas that is major raw material of this important industry are being regularly increased. The industrialists were expecting from the Government some relief in budget 2008-2009 so that they may be able to achieve a firm stand in the market to export the textile goods, but they are disappointed to know that no relief has been announced in said budget. The exporters have pointed out that the buyers have been shifted from Pakistan and they have started buying the textile goods from our neighboring countries, so Government may give some relief to this industry. This was emphatically contended by Mr. Nazim Shehzad Sh. Regional Chairman APTPMA.

Press Release regarding shortage of Gas supply Released on 10th July 2008
The representative of all the Associations related with textile, have contended that there are two kinds of categories which use the Gas. One is that who use the Gas to produce the energy for spinning Mills, for Captive Power Plants, so that electricity supply could remain intact. The Government has increased 68% in Price of this type of Gas, while in the textile industry which is engaged in Dyeing and Printing of Towel and woven / knitting fabric. For this industry the Gas is a major raw material. So the Government is requested to accept the reality of this truth that these two categories of Gas supply. It is hereby explained that 31% increase in Gas Price is, in fact increase in cost of production of that category of the industry which is the value added and increase in price of this type of usage of Gas in our neighbor countries are 50% less then the price in Pakistan. We therefore, earnestly request the Govt to realize the importance of both these categories and to accept the facts about Gas supply as major raw material and Gas supply for producing energy.

Press Conference as well as General body meeting on 6th July 2008
APTPMA Annual Report 2007-2008 98

In Dynasty Hotel, Mr. Nazim Shehzad Sheikh announced in press conference that if Government doesn’t take back the increase in prices of Gas, Electricity and oil, we all Association will go on strike on 11th July 2008. So Government must fulfill his promise to take back the increase in prices.

Press Released on 14th July 2008
A press release was issued on 14-7-2008 wherein Mr. Nazim Shehzad Sheikh, Regional Chairman APTPMA stated that textile processing industry has become victim of crises. The export of textile goods is 70% of national export and inspite of this importance, the textile industry is suffering very badly.

Press Released on 25th July 2008
A press release was issued on 25-7-2008 wherein, devastation of textile processing industry due to unscheduled and severe electricity load shedding. Millions of workers have become job less due to closure of industry. The Regional Chairman Mr. Nazim Shehzad Sh. Proposed that Government should make a number of small dams to meet the shortage of Electricity. APTPMA requested the Government that according to availability of electric supply, FESCO may be advised to make a schedule of closure to run the factories to some extent. If FESCO doesn’t do the same then we will gather at FESCO office and will agitate for our rights.

Press Released on 29th July 2008
A press release was issued on 29-7-2008 wherein APTPMA strongly condemned the Government policy under which 400 MW electricity from Faisalabad, was being transferred to Karachi to meet the shortage of electric supply, while line losses in Karachi is about 40% and electricity rate is cheaper then the rate in Faisalabad. So Government should not give stepmotherly treatment to Faisalabad. Regional Chairman APTPMA Mr. Nazim Shehzad stated that EESC is defaulter of 40 billion while FATA is defaulter to the tune of 77 billion. Inspite of this WAPDA is producing 600MW extra supply which is a share of FESCO that is absolutely unjustified. So Government should, in all fairness, restore the quota of electric supply for Faisalabad to FESCO.

Press Released on 19th August 2008
A press release was issued on 19-8-2008 regarding WASA problems. The MD WASA during a meeting with APTPMA stake holders, stated that restructuring of WASA is need to increase WASA working graph. So that WASA officers may work honestly and they could perform their duties efficiently. Resultantly WASA will be recognized as respectable institution. MD WASA told that all WASA disposal stations being up graded and old pumps / machineries being replaced with new pumps and machinery. It was stated by MD WASA during the meeting with Executive Committee of APTPMA. He further stated that we has not understood, which one of sewer system has block suddenly. WASA staff is definitely involved in this abnoxicious job. MD WASA contended that WASA has a plan to cover all open channels after cleanliness for the safety of the public as well as the sewer system. He further informed APTPMA members that NLC staff has not contended the road side drain with WASA sewerage system, so during the rain, the sewer water flows on the road for many days. The Regional Chairman APTPMA told MD WASA about the problems being faced by the factory owners and gave the proposals to resolve these problems. MD WASA promised to resolve these immediately.

Press Released on 17th September 2008
Regional Chairman APTPMA issued a press release on 17th September 2008 wherein he protested against closure of Gas supply for two to three weeks. He stated that why Government is making a

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99

program to privatize Quaderpur Gas field station that is very profitable for the Government as well as SNGPL. Mr. Nazim Shezad Sheikh regretfully stated that whole year the industry has been remaining closed due to shortage of supply of electricity and Gas which are curtailed again and again. He requested the Government to make sure the supply of Gas and electricity without any interruption. Besides this, the workers will remain on jobs.

Press Released on 24th October 2008
A press release was issued on 24-10-2008 wherein Regional Chairman APTPMA requested the Prime Minister of Pakistan to fulfill the commitment made with industrialist in Governor House Lahore. He stated that textile processing industry being value added and export oriented sector of textile, is an asset of Pakistan so Government must facilitate this industry. The Regional Chairman appealed to the Prime Minister Pakistan to issue an order to withdraw the increase in prices of Gas which is 31% and increase in price of electricity which is 58%. He also requested the Government to withdraw the proposal of further 33% increase applied to OGRA by SNGPL and SSGPL that is unjustified. He further added that Government should make a Comprehensive policy to stabilize Pakistani currency.

Press Released on 20th November 2008
A press release was issued on 20-11-2008 wherein Regional Chairman agitated against closure of Gas supply to the industry. SNGPL has planned to close each unit for five days in five zones of SNGPL due to shortage of Gas supply. Mr. Nazim Shehzad regretfully pointed out that whole year the textile processing industry has not been in working position due to continuous shortage in supply of Gas and electricity. He told that the performance of Faisalabad dry port has by as much as 45% which is simply alarming for exporters as well as the Govt who should formulate a comprehensive policy to support the textile processing industry being value added, export oriented, generating heavy foreign exchange and labour intensive sector, is back bone in Textile Industry.

"I.T." Set Up
As everybody knows that the present age is the age of Information Technology (IT). We in very short time can collect and transfer the information to others. Mr. Nazim Shehzad sheikh realizing this necessity, has established IT set up in Faisalabad Region in the sense of up gradation of this region. A web site of APTPMA Faisalabad Region has been launched. Web site of APTPMA-Faisalabad Region www.aptpma.com is

E-mail: texinfo@aptpma.com
All the interested persons can collect the information through this web site being updated time to time.

Caustic Soda Issues
During the peak season of textile processing industry in the month of March & April 2008 APTPMA members faced an acute shortage in supply of caustic soda. Mr. Nazim Shehzad Sheikh, Regional Chairman APTPMA held a series of meetings with the chairman and other office bearers of Caustic Soda Manufacturers Association (CSMA) and after detail discussion the followings were decided amicably.

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100

1.

Manufacturer of caustic soda either Sitara Chemical Ind. or Ittehad Chemicals, will send the vehicle to that consumer whose invoice is being issued 2. The recommended vehicle will reach at the same Textile Processing Unit whose invoice has been issued. 3. The concerned staff of Textile Processing Unit at the time of receiving the vehicle, will check the quality, quantity and degree of caustic soda and if any discrepancy is found, the concerned staff must block this vehicle in factory premises and may inform the relevant officers of caustic soda manufacturer companies on following numbers. ASitara Chemicals Industries. (041-2643261, 2600108) (FAX 041-2629210) Mr. Hamid Nadeem “Deputy Mangers Marketing” BIttehad Chemicals (0300-8650725)

(041-2643617, 2013131) (FAX 041-2644658) (0321-6623929)

Mr. Khalik M. khokher “Area Manager 4.

Caustic Soda Manufacturers i-e- Sitara Chemical Ind. or Ittehad Chemicals, will not provide caustic soda liquid less than 50 degree to the textile processing units.

5.

The concerned staff of textile processing units will put the signature, name and stamp of the factory on receiving evidence, and time & date will also be mentioned. After this exercise the receiving paper will be faxed to the caustic soda manufacturers companies.

NOTE: It was unanimously decided in order to make sure about correct supply, each unit of textile processing will send his demand of caustic soda on prescribed Performa to CSMA through the Association APTPMA. The format of prescribed Performa is given hereunder.

Prescribed Performa for DEMAND OF CAUSTIC SODA
12Name of Unit: -----------------------------------------------------------------------------------------Name of Owner/Representative: (A) ------------------------------------------------------------(B) ------------------------------------------------------------34Address of the Unit: ---------------------------------------------------------------------------------Phone: (Fac:) --------------------------------------(Off:) -------------------------------------------(Mobile:) ---------------------------------------- (Res:) ----------------------------------56E-Mail: ------------------------------------------------------------------------------------------------Nature of textile processing: (Please indicate as Yes/No) a. Printing --------------------- b. Dyeing ----------------------- c. Bleaching ---------------

APTPMA Annual Report 2007-2008

101

7-

Major Quality being processed in the unit: --------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------8Dyes being used in the Unit: (Please indicate as Yes/No) Reactive Dyes ----------------------------------Pigment Dyes -----------------------------------9Caustic Soda Demand (Month wise) Disperse Dyes -------------------------------Direct Dyes ----------------------------------

Months March 2008 April 2008 May 2008 June 2008 July 2008 August2008 September 2008 October 2008 November 2008 December2008 January 2009 February 2009 Total

Liquid

(ton)

Flakes

(Kg)

(ton)

(Kg) Stamp of the Unit

Name & Signature of Authorized Representative.

APTPMA- Faisalabad Region wrote a letter No. 553 dated: 18th April 2008 to the Federal Minister for textile industry to resolve the acute shortage of caustic soda. In this letter APTPMA also requested to provide regular supply of electricity to caustic soda manufacturers companies so that adequate production can be achieved to meet the demand of this chemical.

WASA
APTPMA member units have been facing WASA problem for last many years. A number of meetings were held to resolve WASA issues. The City District Nazim, DG. FDA and MD. WASA accepted that textile processing units were established first and then residential areas were developed in city area. APTPMA and WASA held a series of meetings to resolve WASA issues. The City District Nazim Faisalabad and MD WASA appreciated the cooperation of APTPMA member units.

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102

Environment Issues
Textile Processing units located in thickly populated areas, have received the notices issued by Environment department. This issue was resolved by APTPMA Regional office and member units were requested to construct retention tanks in their factories and to fix the screen at the end point of disposal of waste water. The member units in compliance of this, have done the same to resolve the environment issues.

R & D Certificates
APTPMA-Faisalabad Regional office issued 762 R&D certificates to our member units during the year.

ACTIVITIES REPORT 2007-2008 Written by

MUHAMMAD ASHRAF
Regional Secretary APTPMA-Faisalabad Region.

APTPMA Annual Report 2007-2008

103

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