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Gas & power crunch adversely affects Pak textile industry
Feb '11
Acute shortage of gas is likely to hamper the Pakistan's textile exports greatly while closure of the factories would render thousands of workers jobless and agitating, leading to industrial unrest and deterioration of law and order situation in Pakistan.

Wasim Latif, Chairman of Pakistan Textile Exporters Association, while being apprehensive about adverse impacts of the decline in production in the textile sector and their resultant failure to honour the export commitments, recently said that, the country's textile exports were already bearing the heat of rising cost of raw materials and overhead items and now this gas suspension for four days in a week would prove fatal for the industry.

Such gas scarcity coupled with the electricity crunch has compelled several industries and small and medium scale enterprises to cease their operations. The official said that, such gas and power crunch have claimed jobs of millions of workers as production goes down and it is also inflicting a loss of more than Rs 220 billion on the industry, each year.

He said that, the textile exporters are not being able to meet the export deadlines and the buyers, too, are losing their faith in the Pakistani exporters. Over the last two years a rise of around 73 percent has been noted in the gas prices, which is why the Pakistani products are losing their competitiveness in global markets, while total suspension of gas supply has further added to the difficulties of the industrialists and several others, associated with the sector for their livelihood.

Wasim laid emphasis on that, the government needs to find a solution to the issue as it is not only affecting the industry's production, but has even raised the problems for several daily wagers who are left with no source of income, due to closure of the industries.

He even stated that, industrialization plays a vital part in economic development of any country, as it not only brings in the much sought after foreign exchange to the country's economy, but also serves as a source of employment for many professionals, technical personnel, skilled and unskilled workers. But then, dearth of basic energy sources like gas and power, greatly affect the productivity and efficiency of the industry.

Fibre2fashion News Desk - India

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