Textile Industry Owes Rs. 3 Billion in Cess Arrears

Islamabad:The Senate Standing Committee on National Food Security and Research, chaired by Senator Syed Masroor Ahsan, today at Parliament House discussed the recent status of cess recovery from the textile industry. Officials apprised the committee that approximately Rs. 3 billion in cess arrears are owed by textile industries. Instead of paying the dues, 121 textile industries filed 65 cases against the amount, of which 63 were decided in favor of the Pakistan Central Cotton Committee. However, two cases are pending in the Peshawar High Court. In the year 2023-24, the Cotton Commission collected around Rs. 293 million in cess. Currently, 184 textile industries are paying the cess, and 157 are not responding. Senator Aimal Wali Khan inquired about the role of the Pakistan Central Cotton Committee (PCCC) and the rules under which such a committee was constituted. The PCCC, constituted under an act of Parliament, is chaired by the Federal Minister, with members including APTMA, Provincial Secretaries of the Agriculture Department, and cotton growers from all four provinces. The committee deferred the matter, stating that officials failed to provide a breakdown of cess owed by textile industries.

Senator Syed Masroor Ahsan highlighted the issue of pensions for employees of the Pakistan Cotton Standards Institute. He directed that pensions should be provided to these employees, stating that they had dedicated their lives to the institution and that the pensions should be disbursed as soon as possible.

The Senate Committee was briefed on the role of the Wheat Board and the members comprising the Board. Officials apprised the committee that the Wheat Board, comprising 27 members, including wheat growers, was constituted following the recommendation of the Senate Standing Committee. The Board is mandated to ensure the availability of agricultural inputs for wheat growth and the evaluation of the cost of wheat crop production in consultation with the provinces. However, the initial forecast indicates that the production of wheat is expected to decline in the next rabi season due to the lower price of wheat in the market. As a result, the yield of wheat is expected to be low in the next rabi season.

Furthermore, the committee was briefed on the role and function of PASSCO along with the budget for the last three years. MD PASSCO, Sarfaraz Durrani, informed the committee that the primary function of PASSCO is to maintain strategic reserves of wheat at the national level to ensure food security. Additionally, PASSCO extended social welfare to farmers by providing a support price to stabilize the market price. To run its operations, PASSCO borrows money from six commercial banks for the procurement of wheat. These banks own a 75% share, while the remaining 25% share of PASSCO is owned by the Government of Pakistan. PASSCO has not received any budgetary grants from the Government of Pakistan to run its operations. As of now, PASSCO has receivables of around Rs. 194.746 million, which are owed by the Food Departments of all provinces, including Azad Jammu and Kashmir, the Government of Pakistan, and the Pakistan Army. Recently, PASSCO has taken disciplinary action against 249 employees, including two senior general managers, involved in corruption to enhance the performance of PASSCO. The committee decided to constitute a sub-committee to investigate the recent scandal of wheat imports and named Senator Aimal Wali Khan as its convener.

In attendance were Senators Aimal Wali Khan, Abdul Wasay, Poonjo Bheel, Dost Muhammad Khan, Danesh Kumar, Secretary for National Food Security and Research Ali Tahir, Managing Director PASSCO Sarfaraz Durrani, and other senior officials from the concerned departments.