FAISALABAD: The Pakistan Textile Exporters Association (PTEA) has welcomed the constitution of a special banking committee for revival of sick units.
The revival in Faisalabad itself could help in fetching $1 billion in foreign exchange and create job opportunities.
PTEA Chairman Sheikh Ilyas Mahmood and Vice Chairman Adil Tahir appreciated the special efforts of textile minister, Abbas Khan Afridi, for the revival of the industry. This move, initiated by the ministry, was to perk up the sick production units operating in the country.
“Activation of idle capacities in the value-added textile sector is a major challenge which is projected to be collectively worth Rs150 billion,” said the PTEA officials. The special banking committee, comprised of National Bank of Pakistan and Habib Bank Limited, will take effective measures and provide necessary financial assistance to get sick units back on track and operate at their installed capacity.
Pointing out the severe energy crisis, chairman Sheikh Ilyas Mahmood said that the Punjab-based textile industry is confronted with a serious challenge of sustainability on account of the energy shortage, particularly gas supply, which is not being provided as per requirement. On the contrary, the textile industry in other provinces is getting sufficient gas supply and the widening disparity of the Punjab-based industry against other provinces is inflicting billions of rupees as an additional cost.
“The government has made special efforts to ensure a specific gas quota to the textile mills in Punjab during the winter season in face of the Generalised Scheme Preference Plus market access facility from the European Union,” said the chairman. “This move yielded additional exports, adding that the textile industry expects diversion of additional gas but is getting only 25% of gas supply at the moment.”
The PTEA urged the government to take all stakeholders into the loop and stop unilateral policies to address the basic issue of energy.
Published in The Express Tribune, July 12th, 2014.
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