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Pakistan govt urged to end gas cut for textile industry
Nov '11
The Pakistan Government has been urged to end gas loadshedding for the textile industry in greater interest of the country. All Pakistan Textile Mills Association (APTMA) Chairman Mohsin Aziz raised this demand in response to the Economic coordination Committee's (ECC) decision of continuing the three day per week gas loadshedding for the industry.

The APTMA Chairman claimed that the gas loadshedding is already holding back the industry from fulfilling its export target and is also affecting its growth potential. During last fiscal, the textile industry earned US$ 14 billion in exports with 15 million workers, and intends to achieve US$ 20 billion levels this fiscal, he said.

Mr. Aziz informed that around 80 percent of the textile industry in the country relies on gas-based captive power plants for carrying out production.

He added that the country needs to immediately increase its exports as its trade deficit has risen to above 30 percent of GDP, and this is only possible with a rise in textile exports.

The APTMA head said owing to enduring financial crunch, there are increasing incidences of bankruptcies in the country's textile industry, and a three-day per week gas holiday is further impeding the growth of the industry as also the country's exports.

During current year by now itself, the industry has suffered gas loadshedding for over 120 days, he said.

According to the APTMA Chairman, the ECC needs to relook at its decision and exempt the textile industry from gas loadshedding on immediate basis. If such immediate action is not possible, the Government should decrease the gas cut from three to two days per week so as to help the industry to achieve its target of reaching US$ 20 billion in exports, while shielding jobs of 15 million workers employed in the industry.

Fibre2fashion News Desk - India

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