Gas supply rationed to textile mills

System in experimental phase, to be implemented if successful.

FAISALABAD: Gas quota will be allocated to Faisalabad’s textile industry, already in shambles due to gas suspensions. However, the catch is that the quota will be on a trial-basis for one week where gas will be opened for one industrial cluster and if successful, quotas will be given permanently to all the units in the region.

The assurance was given by Dr Asim Hussain, Adviser to the Prime Minister on Petroleum and Natural Resources in a meeting with delegation of Pakistan Textile Exporters Association (PTEA).

The gas suspensions for 180 days in the financial year 2011-12 resulted in a 50% setback in production capacity of the sector. The textile industry had witnessed a 40% decline in textile exports in terms of volume during the last year, mainly due to gas outages in the country rendering production units to inactive.

“Investments and industry’s viability are at stake. It is high time to attract investments to revive the downed units, achieve efficiency and boost exports,” said PTEA Chairman Asghar Ali. Present economic situation demands the government to ensure gas supply to keep the wheels of the industry running, he added.

Ali said textile mills were operating on thin margins and could not afford to continue production on alternative fuel. The industry has no alternate option to cease operations as use of alternate fuels was not a viable proposition, he added.

He said that textile industry was contributing 55% to the total exports and providing jobs to 15 million people.

“Allocation of gas quota will help fulfil our foreign commitments well in time and will lead to increase industrial and economic activities in the region,” Ali said.

Hussain accepted exporters’ demand for allocation of gas quota, which will initially be in the experimental phase.

Published in The Express Tribune, November 24^th, 2012.