Gas shortage: Chilly season ahead for Pakistani exporters

Exporters say global buyers switching to Bangladesh.


Imran Rana October 14, 2014

FAISALABAD: With winter fast approaching, industrialists in Pakistan’s third largest city are bracing for a power crisis. Coupled with the pressure of fulfilling international commitments, exporters have their work cut out.

The disruption in electricity and gas supply has become the biggest bottleneck in growth of the textile sector, say exporters, adding that global buyers no longer trust Pakistan’s ability to meet large orders.

Lamenting how winter is the peak season for garment and home textile exports, industrialists said that it was a pity that it coincided with the peak season of gas shortages in the country.

For the last few years, consignments have faced a delay and international buyers are moving towards other markets to meet their requirements for Christmas and New Year.



“We are losing our status and Bangladesh is fast replacing Pakistan as the major exporter of garment products,” Chaudry Salamat, a garment exporter, told The Express Tribune.

“Buyers are reluctantly placing their orders. Whenever there is a fall in Pakistani textile exports, the major beneficiary is Bangladesh.”

The timely shipment to the world markets is still a big problem for Pakistani exporters as manufacturers are unable to meet their orders ahead of the deadline, resulting in additional cost as these now have to be sent via the air route, he added.

The European Union has granted duty free access to Pakistan but the country has not been able to exploit even a fraction of the potential due to the persistent energy crisis, said the exporter.

He added that the exporters will not be well positioned to take full advantage of the GSP Plus scheme because of the energy crisis.

On the other hand, home textile exporters have also demanded the government to resolve the gas crises on a priority basis.

“The winter season is also considered the peak season for home textile sector,” said Sohail Pasha, a home textile exporter and Pakistan Textile Exports Association chairman.

He added that the government needs to take steps to protect the local industry.

“To run factories on alternate fuel sources will increase the cost of production, eroding the benefits of duty free access,” he added.

He said that the continuous gas cut for eight days has caused huge losses to the industry and disturbed production capacity.

Published in The Express Tribune, October 15th, 2014.

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