Loom owners take to the streets

Loom owners warn of massive layoffs, closure of industries if power outages persist.

KARACHI: Members of the proposed All Pakistan Shuttleless Looms Association (APSLA) protested at the Karachi Press Club against the half-day power shutdown under the pretext of low gas supply.

The protesters sought action and pressed the government to resolve the issue within a week.

The shuttleless looms industry is suffering heavily since its production process runs 24 hours a day and the lost time, due to power outages, cannot be compensated for. The industry, which is part of the small and medium enterprise sector, cannot use generators since electricity accounts for 40 per cent of their total costs and generators would raise it by almost 2.5 times, explained Asif Siddiq, the honorary chairperson of APSLA.

“Given the contribution that the industrial sector in general, and the SITE area in particular, makes to Pakistan, [these power outages] are tantamount to halting the entire economy of the country,” said Siddiq.

He pointed to the already existing international and local crisis the industry faces, including unprecedented price hikes for raw material, low demand of Pakistani exports due to global recession, volatile law and order situation in the country and exorbitant utility tariffs. However, he termed the current power outages “the worst phase ever” in the industry’s experience.

The shuttleless loom industry, comprising 15,000 looms, provides almost 50 per cent of the total fabric to the textile export industry and employs a workforce of about 20,000 individuals.

“If the industries do not work for half of the day, we will be forced to lay off 50 per cent labour which will ultimately lead to closure of industries and massive unemployment,” warned Faraz Pervez, Chairman APSLA.

Each loom is suffering a daily loss of Rs25,000 to Rs30,000 and this will lead to the transfer of the huge looms industry to India and Bangladesh where the environment is more business-friendly, added Pervez.

“Pakistan’s image abroad is deteriorating with every passing day and people now prefer to buy from other countries due to uncertainty over delivery on time,” said Rehan Ahsan, a loom owner.

Published in The Express Tribune, October 31^st, 2010.