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APTMA urges Govt to protect & prioritise textile industry
Jun '11
Unprecedented gas suspension to the export-oriented textile industry coupled with high interest rate at 14 percent due to government borrowing has not only jeopardized growth of the textile industry and exports but put the survival of existing industry at stake, said Chairman All Pakistan Textile Mills Association (APTMA) Gohar Ejaz.

He has urged the government to prioritise gas supply to the textile industry to secure 15 million jobs and $14 billion exports during current fiscal. According to him, the textile industry is being hit hard due to ongoing energy crisis, depriving the gas supply to the textile units for three days a week. Non-supply of gas has adversely affected textile production mainly meant for exports, as 43 percent of its capacity potential remained non-operative. Sizeable workforce has been laid off due to disruption of gas supply, adding to the unemployment index of the country with every passing day.

He deplored that the SNGPL authorities has not been observing equitable distribution of the gas shortage on its network despite clear-cut instructions of five days a week gas supply to the textile industry by the government back in February 2011. He said the textile industry has contributed a billion dollar every month to the country's exports during last five months because of the interest taken by the government in energy security to the industry. However, the unprecedented supply cut of three days a week has put the industry again on back gear.

Gohar remarked that high interest rate of 14 percent due to heavy government borrowing and inflation is a stumbling block for investment in the country. He said the textile industry is ready to undertake further investment as early as it is provided with financial environment conducive to grow.

He said the government should reduce borrowing from the banking sector to ensure liquidity available for the industry for productive utilization leading to industrial development in the country. Chairman APTMA has appreciated government's special focus on textile industry and urged the government policymakers and planners to follow it religiously and reposition the textile industry on government's priority list to ensure investment, employment and exports.

All Pakistan Textile Mills Association (APTMA)

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