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Gas supply cut to stagnate Pakistan textile industry: FCCI
05
Nov '13
A further reduction in gas supply to the Textile industry of Faisalabad in Pakistan during the next three months would lead to industrial stagnation, making it difficult for producers to honour their export commitment resulting into increased unemployment, said Faisalabad Chamber of Commerce and Industry (FCCI) President Engineer Suhail Bin Rashid at a media briefing.
 
Presently the Faisalabad textile industry is receiving only 170 millions of cubic feet per day (mmcfd) gas as against its requirement of 335 mmcfd of gas during winter season, and any further cut in this supply would bring the industry to a halt, as no other alternative fuel is feasible or available and the production process does not move ahead in the absence of gas supply, he added.
 
Mr. Rashid said that of the total US$ 14 billion of textile exports from the country, Punjab contributes around US$ 10 billion in exports of which Faisalabad accounts for 40 percent.
 
The non-supply of gas to Faisalabad industry would not only impact domestic supplies but also exports, he added.
 
The FCCI official also stressed that increased unemployment resulting from this situation could also impact the law and order situation in the area.
 
Mr. Rashid said the gas prices in Pakistan are the highest in the region at Pk Rs. 488.23 per Million Metric British Thermal Units (MMBTU), whereas in Bangladesh it prevails at Rs. 260 per MMBTU and in Sri Lanka at Rs. 330 per MMBTU, and with such high rates Pakistani producers and exporters are finding it difficult to compete against other nations like India, Sri Lanka and Bangladesh.
 
Pakistan’s external reserves are already at a critical stage and any further reduction in export earnings is likely to worsen the balance of payment situation, he added.
 
The FCCI official has urged the Government and gas authorities to devise a rational load management plan to relieve the domestic textile producers during the winter season, as gas and power crisis are the greatest hindrances in the way of these producers who are eager to expand their industrial base and investments.
 

Fibre2fashion News Desk - India

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