The All Pakistan Textile Mills Association (APTMA), considered the backbone of Pakistan’s exports, has lodged a strong protest with the government. APTMA contends that the Ministry of Food Security failed to include several crucial and unanimous decisions made during the Cabinet Committee meeting on Cotton Revival, chaired by the Deputy Prime Minister, in the official minutes of the meeting. This situation is escalating uncertainty and anxiety within the vital textile sector.
APTMA has sent a strongly worded letter to the Deputy Prime Minister regarding this serious issue, pointing out hurdles facing the cotton industry.
Key Points Excluded from the Minutes:
According to APTMA’s letter, the minutes specifically omitted the Deputy Prime Minister’s direct directives concerning the Cotton Cess. These omitted directives include:
- Cess Collection: The Deputy Prime Minister had ordered the collection of the Cotton Cess at a rate of PKR 100 per bale and had directed that the rules for its collection be changed.
- Distribution Formula: An agreement was reached that under the Cess formula, 70 percent of the funds would be spent on Research and Development (R&D) for cotton revival, while only 30 percent would be allocated for administrative expenses.
- Pakistan Cotton Board (PCB): The proposal for establishing the Pakistan Cotton Board and recommendations to enhance private sector participation in the board were also left out of the minutes.
- FBR Collection: It was agreed upon that the Cotton Cess would be collected through the Federal Board of Revenue (FBR).
APTMA has accused the Ministry of Food Security of a clear violation of the Deputy Prime Minister’s direct orders. The textile body has demanded that the current minutes issued by the Ministry of Food Security be immediately withdrawn and revised minutes, reflecting the consensus recommendations of all stakeholders, be issued to facilitate the crucial process of cotton revival.
