KP Textile Mills Facing Acute Shortage Of Raw Material, Fearing Closure

Chairman Khyber Pakhtunkhwa Textile Mills Association, Afan Aziz has said that the spinning mills of Khyber Pakhtunkhwa are facing an acute shortage of raw materials fearing closure due to problems in establishing the letter of credit (LC)

PESHAWAR, (UrduPoint / Pakistan Point News - 17th Jan, 2023 ):Chairman Khyber Pakhtunkhwa Textile Mills Association, Afan Aziz has said that the spinning mills of Khyber Pakhtunkhwa are facing an acute shortage of raw materials fearing closure due to problems in establishing the letter of credit (LC).

In a press statement issued here on Tuesday, Afan Aziz raised this issue and expressed the fear that mills will close due to lack of raw material.

Afan informed that KP Textile Mills Association wrote a letter to the Governor State Bank of Pakistan (SBP) requesting that this issue be resolved as soon as possible.

He praised the state banks' circular dated December 27, 2022, which relaxed import restrictions on export-oriented sector imports.

Spinning mills are an export-oriented sector and thus qualify for import relief announced by SBP, Afan viewed.

He said that raw materials in KPK spinning mills are rapidly depleting, threatening mill closure and the issue needs to be resolved at the earliest.

He warned that the closure of mills would result in massive unemployment in KPK, potentially causing public unrest.

Afan urged the authorities to take action to save the province's spinning textile mills and avoid massive unemployment.