Economy problems

According to textile ministry the severe load-shedding is going to cause Pakistan a potential loss of $2 billion


Editorial October 21, 2014

The textile ministry recently requested the prime minister to intervene and help resolve the gas shortage issue as mills prepare for export orders ahead of winter. This development was followed by a press conference in which SM Tanveer, the central chairman of the All Pakistan Textile Mills Association, said the finance minister had promised to provide gas to the textile sector. After celebrating attaining the GSP Plus status that was supposed to grant the country duty-free access to the European Union, Pakistan had hoped for an increase in its exports. It was tipped to be a game-changer as the country could have earned “valuable foreign exchange, boost reserves, reduce the trade deficit and take the path to economic prosperity”. These were a few of the many pluses the government had hoped for at the start of the current year. The textile sector cherished the development and the media was pounded with statements on how this was a new dawn for Pakistan under the current government.

However, so far, it has been nothing short of a disaster for Pakistan’s economy. The textile sector faces a gas shortage as domestic consumers are given preference in the winter season. The severe load-shedding, coupled with the delay faced in the release of funds under various schemes, is going to cause Pakistan a potential loss of $2 billion, according to the textile ministry. The current gas shortage is not a new phenomenon. It has caused a persistent crisis, which is felt not only by the textile sector, but by CNG stations as well as consumers at home. A delay in resolving the issue means that textile exports — which constitute a large portion of the country’s total exports — are going to decline. So far, in the current fiscal year, they already have shown the same trend. It is hypocritical on the part of the government to raise hopes of any sector and then state that it faces logistical issues which are preventing the achievement of goals. With the prime minister having a lot on his plate already, it appears that Pakistan’s economy will continue to suffer.

Published in The Express Tribune, October 22nd, 2014.

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COMMENTS (2)

bahadur khan | 9 years ago | Reply

i agree with hellboy on build and handover basis, in pakistan also

hellboy | 9 years ago | Reply

India nepal strted recently concluded a power pact in which Indian company will build dams in Nepal and in return Nepal will sell electricty to india.Why pakistan and india are not cooperating in same way.In balgladesh India's NTPC is building a 5000MW power plant also.

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