Pakistan Punjab textile sector irked by gas supply issues

22 Nov '13

2 min read

The textile industry of Pakistan’s Punjab state is agitated owing to the increase in power charges and poor gas supply to mills, and is apprehensive whether it would be able to reap benefits from the expected European Union (EU) Generalised System of Preferences Plus (GSP+) status.

According to industry leaders speaking at an interactive session organized by All Pakistan Textile Mills Association (APTMA), the textile industries in other provinces of the country enjoy 100 percent gas supply, whereas, units operating in Punjab, despite making large investments towards installation of Captive Power Plants (CPPs) during first half of last decade, hardly receive 31 percent gas supply of the total requirement, reports The Nation.

Gas supply to textile units in Punjab has reduced to 114 days per year in 2013, as against 302 days in 2008, according to the textile industry experts of the country.

The electricity tariff for the textile industry in the country is around 15 cents, which is higher than the 7 cents tariff that prevails in competing countries. Furthermore, the speakers at the conference pointed out that textile units in Punjab were also exposed to 6 hours per day electricity load shedding on independent feeders.

According to the speakers at the APTMA conference, the country has not made sufficient efforts to enhance the availability of man-made fibre (MMF), which forms around 70 percent of global textile exports.

The cotton to other fibre utility ratio in Pakistan textile industry is around 69 percent, against the global average of 33 percent, they added. The speakers pitched for ensuring availability of MMFs to the textile industry while adhering to No Duty No Drawback policy.

Noting that textile businesses in Pakistan endure highest policy rate in the region, APTMA group leader Gohar Ejaz said Pakistan needs to learn from developed countries which extend credits to their industries at nominal rates, to allow them to grow.

The APTMA is currently assisting the Government to pitch for GSP Plus status and aims to double textile industry exports from current US$ 13 billion to US$26 billion in next five years, but this can only be achieved with sustained energy supply, he added.

Fibre2fashion News Desk - India

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