Textile industry hits out at gas supply cut-off notices

LAHORE:

While expressing concern over the threat of gas supply disconnection and notices of additional security payment from Sui Northern Gas Pipelines Limited (SNGPL), the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has urged the government to withdraw these notices and ensure smooth gas supply to the export-focused value-added textile industry.

This way, it said, exports would not suffer a slowdown as they had just started showing positive numbers after a long time.

PHMA North Zone Chairman Abdul Hameed, in a letter written to Minister for Commerce and Textile Jam Kamal Khan, argued that at a time when exports were showing some growth, government agencies, instead of taking business-friendly measures, were creating hurdles in the way of exporters. Quoting the latest data, he cited that exports of readymade garments rose 23.17% by value and 16.16% by quantity in the first quarter (Jul-Sept) of the current financial year while knitwear exports went up 14.13% by value and 2.17% by quantity.

Similarly, exports of bed wear exhibited a growth of 13.31% in value and 14.55% in quantity, which is an encouraging sign. "The government should extend all-out support to continue this positive trend of export growth through uninterrupted gas supply to captive power plants at affordable and competitive rates," the letter said.

Overall, exports of textile and clothing recorded an increase of 9.51% in the first quarter, though there were concerns that the industry was experiencing a slump. The sector posed negative export growth of 3.09% in July, which rebounded to an increase of 13% in August and 17.92% in September.

Many experts believe that Pakistan's textile sector may struggle to compete with regional rivals due to the implementation of harsh taxation measures in the current fiscal year. However, disruption in supplies from Bangladesh has increased demand for Pakistani garments.

The PHMA chairman regretted that due to structural issues, textile and clothing exports remained static in the last two years despite having installed capacity for $25 billion worth of goods.