Pakistan apparel sector along can generate $500m through exports if provided gas

The Pakistan government has allocated about 100 MMCFD gas to the entire export-oriented industry but now the spinners are being facilitated only. The Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) Central Chairman Ijaz Khokhar as requested MoC to keep focus on apparel industry which can generate foreign exchange, contribute to local taxes and generate employment.

(PRGMEA has urged the govt to prioritize value-added textile industry in energy supply on the patron of Bangladesh, as the garment industry is presently without gas in Punjab.

If the government resolves all issues the apparel sector alone has the potential to generate $500 million through exports to the EU. The government in a meeting with the stakeholders had decided that gas supply will be supplied to the processing units as priority number one but the entire allocation has been taken over by spinning sector despite the fact that they have alternate energy resource.

Ijaz khokhar said that the garment industry in Punjab is becoming uncompetitive within Pakistan due to prolonged power load shedding and complete gas supply suspension, while there is smooth gas and power supply in other provinces.

The value-added textile industry in Punjab is facing problems because of the increasing cost of production due to gas shortages, higher electricity tariff, and amounts stuck up with the Federal Board of Revenue (FBR) in sales tax refunds.

PRGMEA VC Malik Naseer urged the Government to provide a level playing industry for the Punjab-based clothing industry by providing greater gas and power supply, which will help exporters reduce their energy costs and also to refrain them from any further hike in gas charges. He also requested to release the amounts stuck up in sales tax refunds.