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Voluntary closing down of the Pakistan Textile City.

The voluntary winding up of the Pakistan Textile City Limited (PTCL) has started due to non-availability of the required infrastructure including natural gas and the paucity of funds. This was revealed in the National Assembly Standing Committee on Textile Industry which met under the chairmanship of Khawaja Ghulam Rasool Koreja.

The Committee was given a briefing on the closure of the Pakistan Textile City Project, Karachi, along with the policy to sell out its land and Plastics Technology Centre (PTC).

The Committee expressed its reservations over the closure of Pakistan Textile City Project, Karachi, and observed that due to mismanagement and corruption, the debt of textile city is exceeding to Rs 2.4 billion. The Committee directed the Ministry to sell out 250 acres of its land for payment of its outstanding debt and efforts should be made to make it operational by involving Chinese/foreign companies.

The Committee was informed that the company owes a debt of Rs 2.4 billion to the National Bank of Pakistan, out of which Rs 1.3 billion were spent on the purchase of land at Port Qasim and Rs 1 billion have so far been incurred as interest on the loan. On the daily basis, the markup payable is Rs 700,000 approximately. These challenges could be easily handled by selling 200 acres of land to K-Electric, for setting up a coal-fired power plant. The land could not be sold so far as the purpose to establish coal-fired power plant is not covered by the objectives of the PTCL declared in its memorandum of association. A summary was, therefore, submitted to the Prime Minister for placing the case before the ECC for approval.

The Ministry of textile industry requested the Finance Ministry that an amount of Rs 21.05 million may be allocated to clear the earlier liabilities on account of salaries, miscellaneous expenses and to cater for expenses in the current financial year during which other options will be explored to run the centre.

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Publication:Pakistan Textile Journal
Article Type:Brief article
Geographic Code:9PAKI
Date:Jan 31, 2017
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