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APBUMA voices concern over gas outages hitting textile industry
21 Nov '11
2 min read
The All Pakistan Bedsheets & Upholstery Manufacturers Association (APBUMA) has voiced grave concern over the three day gas load-shedding for textile industry in the country.
The Association has claimed that it would badly hit the labour-oriented textile industry of the country, leading to closure of several units and fall in export volumes.
APBUMA said around US$ 1.5 billion worth of production capacity went unutilized during the last fiscal year as most of the industries suffered gas load-shedding for 75 days, which restrained the industry from achieving its export target of US$ 15 billion.
APBUMA stated that the textile industry directly accounts for 60 percent of Pakistan's exports, while employing over 15 million people. Moreover, it also serves as a backward linkage to domestic agriculture industry.
As a key issue, while power and gas tariffs and adjustment charges are increasing the export-oriented industry's production cost, suspension of local taxes and duty drawback would also negatively impact exports of value-added goods as claims worth billions of PKR have still not been released by the State Bank of Pakistan, the Association stated.
It further stressed that owing to power crisis, the country's exporters are not being able to execute their export commitments in time, and hence a majority of the EU and US buyers are losing faith in them.
Also, with unproductive Government policies, Pakistani exporters are losing their global market share to competitors both from within the region and outside.
The Association also expressed concern about the upcountry industry, which during the current fiscal is getting only 2.110 million cubic feet gas per day (mmcfd) against the demand for 3.326 mmcfd, and hence enduring a shortage of 1.216 mmcfd on average per day.
APBUMA emphasized that in order to counter the vital issue of gas shortage, the Government should frame comprehensive policies so as to protect the domestic textile industry and save it from closing down.
The Association has claimed that it would badly hit the labour-oriented textile industry of the country, leading to closure of several units and fall in export volumes.
APBUMA said around US$ 1.5 billion worth of production capacity went unutilized during the last fiscal year as most of the industries suffered gas load-shedding for 75 days, which restrained the industry from achieving its export target of US$ 15 billion.
APBUMA stated that the textile industry directly accounts for 60 percent of Pakistan's exports, while employing over 15 million people. Moreover, it also serves as a backward linkage to domestic agriculture industry.
As a key issue, while power and gas tariffs and adjustment charges are increasing the export-oriented industry's production cost, suspension of local taxes and duty drawback would also negatively impact exports of value-added goods as claims worth billions of PKR have still not been released by the State Bank of Pakistan, the Association stated.
It further stressed that owing to power crisis, the country's exporters are not being able to execute their export commitments in time, and hence a majority of the EU and US buyers are losing faith in them.
Also, with unproductive Government policies, Pakistani exporters are losing their global market share to competitors both from within the region and outside.
The Association also expressed concern about the upcountry industry, which during the current fiscal is getting only 2.110 million cubic feet gas per day (mmcfd) against the demand for 3.326 mmcfd, and hence enduring a shortage of 1.216 mmcfd on average per day.
APBUMA emphasized that in order to counter the vital issue of gas shortage, the Government should frame comprehensive policies so as to protect the domestic textile industry and save it from closing down.
Fibre2fashion News Desk - India
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