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Pakistan's textile sector losing 35pc production on energy shortfall
Oct '11
The textile sector in Pakistan is losing around 30-35 percent of its production capacity owing to the ongoing two days per week gas load shedding in the country's Punjab province, the National Assembly was informed on Monday.

The energy shortfall in the country is adversely affecting the production potential of the textile industry, which, in turn, is affecting the country's exports, thus leading to a decrease in foreign exchange earnings and consequently, an unfavourable trade balance. Moreover, the production loss to textile sector would directly affect its entire value chain process, the legislators in the Lower House were informed.

The Ministry of Textile has received assurance from relevant authorities that the textile sector would be given all possible cooperation to minimize the effect of gas and electricity shortage on the sector.

As a way of compensation towards the cost of production, the Pakistan Government has provided financial support to the textile sector through several schemes, including mark-up rate support, refund of past R&D claims, export finance mark-up rate facility, and drawback of local taxes and levies (DLTL).

Fibre2fashion News Desk - India

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