Business

Textile: Exporters furious over cut in gas supply

Demand at least 25% supply in winter under the quota regime

Imran Rana November 27, 2015

Demand at least 25% supply in winter under the quota regime. PHOTO: FILE

FAISALABAD: Textile exporters have resented a reduction in gas supply quota for their industrial units terming it ‘an attempt to shatter the whole industrial chain’.

They were of the view that apart from the industry’s sufferings, the government will ultimately lose on many counts.

The government, they said in a statement, should ensure at least 25% gas supply to textile exporters in winter under the quota regime and take serious cognisance of the matter in order to support the industry.

Pakistan Textile Exporters Association Chairman Asghar Ali criticised the restriction of 17% gas supply to the industry and termed the move ‘unilateral.’

Rejecting the argument of gas managers that the supply is squeezed in winters, he stressed that weather has not yet touched the critical point.

“Gas supply to the textile sector has never dropped beyond 20% in the past; the current reduction will drastically curtail goods’ manufacturing, making it impossible for the exporters to meet commitments,” said Ali.

“Energy shortage is the prime cause of economic instability and decline in industrial growth as a sizeable textile capacity has been severely impaired and exports, both in terms of volumes and value, dropped across the value chain,” said Arif Mahmood Qureshi, a textile exporter.

“Though the government contemplates increasing industrial growth targets, its decisions pose a grave threat to the plan.”

With a share of $6 billion from a total of $13.9 billion worth of textile exports, Punjab is a major stakeholder, Qureshi added, noting a decline of 11.38% in exports in October this year compared to the same month of previous fiscal year.

“At a point where industrial production and exports are falling, the reduction in gas supply will aggravate the situation. Falling exports not just mean lesser foreign exchange inflows, but also the loss of employment.”

The export-oriented industry has been failing to make on-time deliveries due to acute energy shortages, forcing buyers to switch to other regional countries, added Qureshi.

Published in The Express Tribune, November 28^th, 2015.

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COMMENTS (5)

Atheist_Pakistan | 8 years ago | Reply @JS For starters, have you ever visited these textile mills? Did you know they literally drain out hot fresh water out of their factory and dump it in the nearest nalla instead of setting up a heat exchanger to reuse the energy? Believe or not, 99 percent of the textile mill aren't bothered with energy conservation. Like what would they when they can ask the government to supply them with cheap gas to run their machineries from the 60s? As Ishrat pointed out, there is biogas. But no, all they want is cheap natural gas. Using these gas for transport is a lot better then burning it up for heat!

ishrat salim | 8 years ago | Reply @Atheist_Pakistani: You are correct,so, why the sugar mills cannot use bagasse to make electricity for their sugar mills instead of using electricity from National grid. It is cheaper to make electricity through bagasse. They can even sell excess electricity to the govt and earn extra.