MINUTES OF (EMERGENT) EXTRAORDINARY GENERAL MEETING OF APTMA HELD ON WEDNESDAY, 4-MAY-2011 AT 1:30 PM AT APTMA OFFICES IN KARACHI, LAHORE, PESHAWAR &

PAKISTAN TEXTILE MILLS ASSOCIATION

PRINCIPAL OFFICE

APTMA House, 44-A, Lalazar, Moulvi Tamizuddin Khan Road, Karachi

Phone: +92-21-111-700-000, Fax: +92-21-35611305

Email: aptma@cyber.net.pk, Website: www.aptma.org.pk

PO/COO/08/2081 May 7, 2011

MINUTES OF (EMERGENT) EXTRAORDINARY GENERAL MEETING OF APTMA HELD ON WEDNESDAY, 4-MAY-2011 AT 1:30 PM AT APTMA OFFICES IN KARACHI, LAHORE,

PESHAWAR & FAISALABAD (OVER VCS)

Participants:

Mr. Gohar Ejaz In Chair (Regional Office, Lahore)

(List of participants attached)

The meeting commenced with recitation of verses from Holy Quran. Chairman APTMA welcomed the participants and moved to the agenda item.

AGENDA ITEM: TO DISCUSS COTTON & YARN SITUATION

Chairman informed the General Body of APTMA that this meeting has been convened on the requisition of Punjab Region, whose members held a Regional General body meeting on 2^nd May 2011 and resolved to request the centre to discuss the prevailing situation of cotton & yarn. He requested Mr. Ahsan Bashir, Chairman Punjab Region to brief the house.

Mr. Ahsan Bashir apprised the house that due to electricity load shedding, curtailment of gas and sales tax issues, etc., textile industry is in critical situation. In this connection, they held a series of meetings and also met with the concerned authorities. He said that the General Body of Punjab Region has unanimously resolved to curtail production by observing closure of mills for 10 to 15 days during gas holidays and this closure be discussed in the General Body of Centre and Central Chairman may be requested to announce the closure. He further said that accordingly a written request was moved to the Central Chairman for calling a general meeting of entire membership to seek consensus and take a collective decision, while the collective decision of the Punjab Region was to go for closure of mills for 10 to 15 days, he added.

Chairman apprised the meeting that he had already indicated in different meetings that the spinning mills were piling up inventories and now mills are holding average 30 days stocks of yarn at around 250,000 tons. He supported timely decision of the Punjab Region and hoped that this house would also understand the situation and take a collective decision in the best interest of the industry otherwise we would be compelled to sell the yarn below the raw material price. He opened the house for discussion.

Mr. M. Yasin Siddik viewed that under the circumstances closure of mills by the entire membership seems irrelevant at APTMA platform. It has more relevance to a business decision and should be the prerogative of members on individual basis. In case of collective decision, mills having cotton stocks for next 15 or more days would be in problem because of uncertainty. He reminded that all our past decisions and collective strategies contrary to normal business practices have been unsuccessful.

Mr. Shahzad Ahmed did not agree to the idea of formation of any cartel to observe closure of mills for 15 days. He was of the view that closures will not be successful because every member has its own priorities in the market and nobody would like to loose the customers. He advised that APTMA should not decide any closure of mills.

Mr. Danish K. Monnoo said that the resolution moved by the Punjab Region does not mean to close the mills, but to send a message to the international market because the price of Pakistani yarn has fallen very much in the international market compared to India, China and Indonesia.

Mr. Shahzad Ali Khan said that collective decision for closure of mills on this point would be difficult rather members may be segregated in two parts. Those holding contracts may operate and others with no contracts may not produce yarn and observe closure and by this way former will join the closure whenever they face uncomfortable situation. He further said that because of difference in energy cost the situation in Punjab and Sindh is different and during gas holidays of 12 days a month, the industry in Punjab has to switch over on electricity. Anyway, the message of closure would bring some positive sentiments from the corridors of power for the textile industry of Pakistan, he added.

Mr. Asif Inam clarified that atleast 40 percent in Sindh-Balochistan have curtailed production and they have already adopted micro-management policy keeping in view their stock position and loss in yarn price; however, these closures are unorganized. Most of the mills are now selling their cotton stocks at lower price, even Shankar cotton is now exported by the mills at $1.70 to $1.75 per pound. He hoped that current pressure on raw material prices and import parity will improve within next couple of weeks.

Sheikh Muhammad Akbar viewed that members should not be compelled to close their mills, however by and large if the members observe closure voluntarily the situation would be different. He said that yarn importers especially in China have held their buying orders because they have stocks for the next few months and waiting for further decline in Pakistani yarn price. The message of voluntary closure of mills would go against free fall of yarn prices, he added.

Mr. M.I. Khurram viewed that as a result of excessive yarn stocks the price is depreciating everyday and because of the fall in price weaving & knitwear industry are very comfortable. He said that figures released by the govt. showing improvement in knitting & garmenting sectors are not accurate. The fall of yarn price coupled with the shortage of energy are dragging the spinning mills to observe closure voluntarily for 15 days to 1 month which would bring stability in the price of yarn, he added.

Mian Muhammad Shakeel informed that there are some orders for Turkey with weaving mills and they would try to export their goods by the end of June 2011 to avert anti-dumping duty. The closure of weaving mills at this stage would not be feasible. The price stability in the yarn market is worrisome factor because there are no further buying orders with weaving industry. The voluntary closure of mills would bring a positive perspective for the spinning industry, he viewed.

Mr. Shahid Anwar Tata appreciated the spirit developed in Punjab to save the spinning industry from current crisis. He said that this is a long term problem and we should find a workable solution collectively.

Mr. Ahmad Kuli Khan Khattak viewed that after a lot of efforts govt. is somehow showing inclination towards APTMA and if APTMA now announces a collective closure of mills, govt. would take it negatively. He said that members have already curtailed their production individually without any announcement or putting APTMA at stake.

Mr. Anwar Ahmed Tata expressed that there is a sudden fall in the price of yarn in Pakistan which he said is like a tsunami for the spinning mills. He further said that the reason behind this crisis is imposition of RGST on 15^th of March 2011 when govt. took this decision abruptly and were unable to implement it for 15 days and as projected by the govt., it would not be able to collect sales tax to the tune of Rs.19 billion within three months due to lack of positive initiative. The other factor causing fall in yarn prices is linked with the international market. He was of the view that we should not give any negative signal to the govt. and create trouble for workers by closing our mills. Any call for closure from APTMA forum would diminish its credibility, he added.

Mr. Wisal A. Monnoo suggested that if the industry is showing losses we should not keep continue to loose money rather curtail our production or close down.

A worthy member from Multan discouraged collective decision regarding closure of mills because most of members have already closed / curtailed their production.

Miss. Kiran A. Chaudhry stressed the need for unity amongst APTMA members and was of the view that those issues benefiting the industry and the association should be handled collectively to achieve the positive results. The closure of mills would not only save from piling up of stocks but convey the message of shortages of energy to the govt.

Mr. Samir Saigol viewed that closure of mills is already in place without any official cover, therefore there is a need to get an official cover by announcing closure of mills collectively.

Mr. Shargeel Khalid mentioned about the impact on price of PC yarn and suggested that curtailment in production for the next 10 days would increase the benchmark price of yarn.

Mr. M. Yasin Siddik said that if the intention of closure of mills meant for catching attention of the govt., then how govt. can help us! Mr. Shahzad Ali Khan replied that govt. may remove 6% duty imposed recently but simultaneously it may have negative impact.

Chairman said that we may propagate closure of mills under the slogan of shortage of energy which is hampering the industry mostly in Punjab both during gas holidays for 3 days in a week and electricity load shedding for 12 hours a day. Due to this energy shortage, mills have become incapacitated and unsustainable to operate on alternative fuel resultantly the production capacity of 225,000 tons have gone down to 100,000 tons per month and due to the energy crisis world’s third largest industry has been forced to bring down its capacity to less than 50%.

Mr. Ahsan Bashir added that the basic issue with the industry is more production and less demand which is primarily due to decline in exports to China and closure of downstream industry in the country. Mills are now piling up inventories since March 2011 which would be around Rs.25 crore at average rate per mills. Now it is the responsibility of the management of APTMA to take responsibility and provide cover to its members and organize closure collectively. All members of the Punjab Region are waiting for the direction to organize closure systematically without any pressure.

Chairman informed that spinning industry is producing 225,000 tons yarn per month, out of which around 50,000 tons are exported and approx. 50,000 tons per month supplied to the processing industry of Faisalabad while rest of 125,000 is supplied to the different organized sub-sectors of the textile chain. Out of total yarn of 300,000 tons produced for the Faisalabad industry during the period from 1^st October 2010 to 31^st March 2011, processing industry of Faisalabad could only consume 150,000 tons because they could not operate due to energy shortages and still it is unable to consume over 25,000 tons per month whereas the spinning industry is producing 50,000 tons for the processors of Faisalabad, and on the other hand export of yarn is declining. He further informed that in quantitative terms there is 80% increase in knitwear & socks, 30% cumulative increase in garmenting sectors, whereas in home textile sector decline has been reported.

Chairman asserted that if APTMA carries a resolution for voluntary closure of mills during gas holidays and members will not operate on alternative fuel, which is costing us to cut-down our capacity to 100,000 tons per month, APTMA can protect this resolution with the govt. very well and there would be no issue absolutely. He assured that he would rather put pressure on the govt. to give gas to the industry as per its requirement. He further said that he is also looking for zero loadshedding of electricity for the textile industry.

Mr. Afan Aziz talked about free trade policy adopted by Pakistan which unfortunately is not being adhered to by our neighboring competitors like India and China. He suggested revival of the free trade policy under some regulatory authority to compete in the international market.

Syed Ali Ahsan supported curtailment of production during gas holidays in Punjab for minimum 2 to 3 days.

Mr. Shahzad Ali Khan proposed that closure should be for atleast 1 to 2 weeks otherwise there would be a lesser effect. The imposition of 6% sales tax would be another reason for closure of mills due to which there is less buying and piling up of inventory, he added.

Mr. Zahur Ahmed observed that in view of the present market condition, members will definitely observe voluntary closures without interference of APTMA; however, the issues like energy and tax which is affecting the Faisalabad industry very much, APTMA can take some positive measures on these issues.

Mr. Zahid Anwar viewed that almost 70% capacity in Faisalabad is already observing closure whereas message for closure from 1 to 2 weeks at APTMA level would not be impacted at govt. level. He suggested that there should be minimum closure for 4 days.

Mr. Ahsan Bashir reiterated that the original proposal of Punjab region was to observe 10 to 15 days closure and second part of their resolution was that APTMA should support the resolution against gas load shedding.

Thereafter, house unanimously supported the resolution of Punjab Region for voluntary closure of mills during gas holidays and mandated the Central Chairman APTMA to contest and protest against gas load management policy for the textile industry.

RESOLEVED that;

House unanimously adhered to the resolution of Punjab Region regarding voluntary closure of mills during gas holidays

House further RESOLVED to mandate the Chairman APTMA to contest and protest against gas load management for the textile industry of Pakistan due to which textile industry has curtailed production and demand of yarn has gone down from 225,000 tons to 100,000 tons per month owing to the energy crisis.

The meeting was ended with a vote of thanks to the Chair and vice versa.

CONFIRMED

CHAIRMAN

____________________________________________________________________ ALL MEMBERS OF APTMA

The above draft minutes have been approved by the Chairman and will be taken up for confirmation in the next meeting.

Muhammad Azam

Chief Operating Officer

LIST OF PARTICIPANTS

(EMERGENT) EXTRAORDINARY GENERAL MEETING OF APTMA

HELD ON WEDNESDAY, 4-MAY-2011 AT APTMA OFFICES ON VCS

SR#	PARTICIPANT	MEMBER MILLS	STATION
1.	Mr. Nadeem Ellahi Shaikh	Ali Asghar Textile Mills Ltd	Karachi
2.	Mr. Afzal Umar	Al-Karam Textile Mills (Pvt) Ltd	Karachi
3.	Mr. Amin Tariq	Amin Textile Mills Ltd	Karachi
4.	Mr. Tariq Saud	Anwar Textile Mills Ltd	Karachi
5.	Mr. Zahur Ahmed	Apollo Textile Mills Ltd	Karachi
6.	Mr. Ahmad Kuli Khan Khattak	Babri Cotton Mills Ltd	Karachi
7.	Mr. Ahmad Kuli Khan Khattak	Bannu Woolen Mills Ltd	Karachi
8.	Mr. Imran Maqbool	Crescent Fibres Ltd	Karachi
9.	Mr. Asif Inam	Diamond International Corpn Ltd	Karachi
10.	Mr. Nadeem Maqbool	Equity Textiles Ltd	Karachi
11.	Mr. Mansoor Allawala	Idrees Textile Mills Ltd	Karachi
12.	Mr. Shahzad Ahmed	Indus Dyeing & Mfg. Co Ltd	Karachi
13.	Mr. Shahzad Ahmad	Indus Home Ltd	Karachi
14.	Mr. Adeel Tata	Island Textile Mills Ltd	Karachi
15.	Mr. Iftikhar Ahmed	Lucky Cotton Mills (Pvt) Ltd	Karachi
16.	Mr. Khurram Inam	N.P. Cotton Mills (Pvt) Ltd	Karachi
17.	Mr. Saraj Monnoo	Olympia Spg. & Wvg. Mills Ltd	Karachi
18.	Mr. M. Yasin Siddik	Premium Textile Mills Ltd	Karachi
19.	Mr. Noor Muhammad	Quality Textile Mills Ltd	Karachi
20.	Mr. Ahmad Kuli Khan Khattak	Rahman Cotton Mills Ltd	Karachi
21.	Mr. Anwar Ahmed Tata	Salfi Textile Mills Ltd	Karachi
22.	Mr. Saleem Shakoor	Standard Textile Mills Ltd	Karachi
23.	Mr. Nadeem Maqbool	Suraj Cotton Mills Ltd	Karachi
24.	Mr. Anjum Rafi	Surriya Textile Mills (Pvt) Ltd	Karachi
25.	Mr. Shahid Anwar	Tata Textile Mills Ltd	Karachi
26.	Mr. Pehlaj Rai	United Spinning Mills (Pvt) Ltd	Karachi
27.	Mr. Imran Aleem	A.A. Cotton Mills Ltd	Lahore
28.	Mr. Imran Aleem	AA Cotton Mills Ltd	Lahore
29.	Mr. Hassan Akbar	Acro Textile Mills Ltd	Lahore
30.	Mr. Adeel Amin Gondal	Akram Cotton Mills Ltd	Lahore
31.	Mr. Hammad Alam	Alam Cotton Mills Ltd	Lahore
32.	Mr. Manzar Farook	Alhamd Corp (Pvt) Ltd	Lahore
33.	Sheikh Mohammed Akbar	Amjad Textile Mills Ltd	Lahore
34.	Sh. Niaz Anjum	Anmol Textile Mills Ltd	Lahore
35.	Mr. M. I. Khurram	Asher Imran Spinning Mills Ltd	Lahore
36.	Syed Ali Ahsan	Ashiana Cotton Products Ltd	Lahore
37.	Mian Muhammad Nasir	Ayesha Spinning Mills Ltd	Lahore
38.	Mr. Haroon Abdullah	Ayesha Textile Mills Ltd	Lahore
39.	Mr. Samir Saigol	Azam Textile Mills Ltd	Lahore
40.	Mr. Naeem Omer	Bilal Fibres Ltd	Lahore
41.	Mr. Mohammad Shakeel	Blessed Textile Mills Ltd	Lahore
42.	Ch. Salamat Ali	CA Textile Mills (Pvt) Ltd	Lahore
43.	Mr. M. Asif Qureshi	Chaudhry Sugar Mills Ltd (TD)	Lahore
44.	Mr. Saqib Ellahi	Chiniot Textile Mills Ltd	Lahore
45.	Mr. M. I. Khurram	Comfort Knitwears (Pvt) Ltd	Lahore
46.	Mr. Naveed Gulzar	Crescent Sugar & Dist. Mills Ltd	Lahore
47.	Mr. S.M. Naveed	Din Textile Mills Ltd	Lahore
48.	Mr. Gohar Ejaz	Ejaz Spinning Mills Ltd	Lahore
49.	Mr. Gohar Ejaz	Ejaz Textile Mills Ltd	Lahore
50.	Mr. Karim Hassan Ali Chatoor	Golden Textile Mills Ltd	Lahore
51.	Mr. Nadeem Ihsan	Ihsan Raiwind Mills (Pvt) Ltd	Lahore
52.	Mr. Danish K. Monnoo	Jamhoor Textile Mills Ltd	Lahore
53.	Mr. Shargeel Khalid	Khalid Shafiq Spinning Mills Ltd	Lahore
54.	Shaikh Muhammad Amjad	Kunjah Textile Mills Ltd	Lahore
55.	Mr. Danish K. Monnoo	Lahore Textile & General Mills Ltd	Lahore
56.	Mr. Danish K. Monnoo	Margalla Textile Mills Ltd	Lahore
57.	Mr. Jawed Iqbal	Mayfair Ltd	Lahore
58.	Mr. Sheraz Monnoo	Monnoo Industries Ltd	Lahore
59.	Mr. Danish K. Monnoo	Monnoowal Textile Mills Ltd	Lahore
60.	Mr. Aamir Sheikh	North Star Textiles Ltd	Lahore
61.	Mr. Sheraz Monnoo	Qureshi Textile Mills Ltd	Lahore
62.	Mr. Danish K. Monnoo	Rawal Textile Mills Ltd	Lahore
63.	Miss. Kiran A. Chaudhry	Resham Textile Industries Ltd	Lahore
64.	Mr. Usman	Sally Textile Mills Ltd	Lahore
65.	Mian Noman Almas Sheikh	Salman Noman Enterprises Ltd	Lahore
66.	Mr. Saad Naseem	Sargodha Spinning Mills Ltd	Lahore
67.	Mr. Umair Haleem	Shafi Texcel Ltd	Lahore
68.	Mr. Imran Aslam	Shahzad Textile Mills Ltd	Lahore
69.	Mr. Ahsan Bashir	Shams Textile Mills Ltd	Lahore
70.	Mr. Umer Shafi	Sheikhupura Textile Mills Ltd	Lahore
71.	Mr. Akhtar Ali Choudhry	Siara Textile Mills (Pvt) Ltd	Lahore
72.	Mr. Shahzad Ali Khan	Standard Spinning Mills (Pvt) Ltd	Lahore
73.	Mr. Basit Azhar	Tanveer Cotton Mills Ltd	Lahore
74.	Mr. Basit Azhar	Tanveer Spg&Wvg Mills (Pvt) Ltd	Lahore
75.	Mr. Danish K. Monnoo	Tribal Textile Mills Ltd	Lahore
76.	Mr. Wisal A. Monnoo	Wisal Kamal Fabrics (Pvt) Ltd	Lahore
77.	Mr. Mohsin Aziz	A. J. Textile Mills Ltd	Peshawar
78.	Mr. Raza Kuli Khan Khattak	Babri Cotton Mills Ltd	Peshawar
79.	Mr. Arshian Mahboob	Babri Cotton Mills Ltd	Peshawar
80.	Syed Asadullah Fatimi	Sarhad Textile Mills Ltd	Peshawar
81.	Mr. Zahid Anwar	Asim Textile Mills Ltd	Faisalabad
82.	Mr. Faiq Jawed	J.K. Fibre Mills Ltd	Faisalabad
83.	Kh. Amer Khurshid	Khurshid Spinning Mills Ltd	Faisalabad
84.	Mr. M. Siddique	Rafiq Spinning Mills Ltd	Faisalabad
85.	Mr. Zahid Sharif	Zahidjee Textile Mills Ltd	Faisalabad

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