SSGC halts gas supply to textile industries

21 Aug '12

2 min read

The apparel industry of Pakistan has claimed that Sui Southern Gas Company (SSGC) has discontinued gas supply to the industries.

Pakistan Apparel Forum Chairman and PHMA Chief Coordinator M Jawed Bilwani, PHMA south zone Chairman Abdul Rauf Patel, and several other Chairmen of value-added textile sector including claimed that cessation of gas supply would prove to be devastating for the country’s economy.

They said the abrupt cessation of gas supply has led to stagnation of the entire value-added textile industry in Pakistan.

The value-added textile industry is already troubled by increasing cost of doing business, which includes excessive gas, water and electricity charges, high rates of export refinance, several federal and provincial duties and taxes, high labour cost and feeble infrastructure, which all make it impossible for the domestic industry to compete with other countries, the joint statement said.

The textile industry in Pakistan is already hit by the Pk Rs. 100 per MMBTU cess levied on the industries under the Finance Bill 2012, and now the stoppage of gas supply by SSGC would prove disastrous for the industries, leading to several closures and further worsening of the already crippled law and order situation in Karachi, the statement added.

Meanwhile, the Karachi Chamber of Commerce and Industry (KCCI) has also expressed concern over termination of gas to industries by SSGC citing low pressure as the reason for the same.

Calling SSGC’s move as one-sided, KCCI President Mian Abrar Ahmad said the process industry, in particular, would be adversely hit by suspension of gas supply, which if not restored immediately would seriously hamper the production of textile industries.

Such suspension would give rise to demand-supply chain imbalance and would disrupt distribution of goods in domestic as well as upcountry markets, he said.

He suggested that the Government should take the stakeholders into confidence before devising any policies or taking decisions concerning them.

Fibre2fashion News Desk - India

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