Pakistan textile export loses to touch $2.2 bn if current energy trend persist

The Punjab-based textile industry, which contributes 70% of the total textile sector of Pakistan, fears that if the sector is not given supply of energy, the textile exports loses will go up to $2.2 billion over the rest of current financial year, said Central Chairman SM Tanveer of All Pakistan Textile Mills Association (Aptma).

Overall textile exports of Pakistan in six months between April and September shows that the country has already lost $1.2 billion on the account of acute energy shortage in Punjab, which is an alarming sign.

Pakistan government is prioritizing domestic consumer for which gas suspension for four months starting from November 15 has been declared. Sui Northern Gas Pipelines Limited has already issued a notice of gas suspension to the textile industry complaining low pressure and dilapidated gas reserves.

The suspension of gas to the textile industry would mean shutting down the textile industry in Punjab, which would further decline exports and lead to massive unemployment of nearly 10 million workers.

Tanveer further pointed out that the increase in industrial tariff twice during 2013, and slapping of 30 paisa per unit equalisation surcharge has shot up from Rs7.75 to Rs12.50 per unit.

No new investment was being made in the textile industry due to energy crunch and 52pc rise in the cost of doing business on account of raised electricity prices. The industry was ready to invest $1bn a year in new capacities, provided the government guaranteed uninterrupted supply of gas and electricity to the factory.

If this happens, the industry will double its exports to $26bn in five years.

Tanveer urged Prime Ministerial Committee on Textile Industry’s chairman Ishaq Dar, who is also finance minister, to priorities the textile industry in gas and electricity supplies to protect exports, jobs and investments.

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