Pakistani textile exporters fear losing out on delivery deadlines

14 Nov '11

2 min read

Pakistani textile exporters are apprehending to lose out on considerable amount of Christmas orders as they may not be able to make timely deliveries due to severe power shortage.

Experts estimate that the country's textile industry may lose out around two billion USD worth of Christmas orders and there will be a decline in its market share in the US and the EU markets.

It is because the deliver dates for the Christmas season are getting nearer, while the extensively labour oriented textile industry is being forced to remain inactive for no less than three days per week owing to gas and power outages.

Industry experts suggest that the Government should reroute the gas that it supplies to fertilizer units to the textile industry that brings in valuable foreign exchange to the country. They explain that in spite of availing gas subsidies, the fertilizer producers sell their produce to farmers at prices that match global prices.

The textile producers claim that the industry endured production losses of two billion USD during last year, owing to gas and power outages. They add that the economy is already ailing due to huge financial losses suffered on account of recent floods and the energy shortages are adding to the problems.

For example, energy crisis is compelling several small and large scale units in Faisalabad to operate at nearly half their production capacity.

According to Pakistan Hosiery Manufacturers Association (PHMA), importers seem to be shifting their orders to other countries as Pakistan's Christmas garment exports have plummeted by 19 percent to US$ 2.31 billion.

Fibre2fashion News Desk - India

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