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Spinning industry compelled to close down 43% capacity
May '11
An Extra Ordinary General Meeting of All Pakistan Textile Mills Association (APTMA) held at the APTMA Punjab office and discussed the ongoing severe energy crisis in the country.

The meeting lauded the efforts of the Chairman APTMA and the government of Pakistan in putting their best efforts to give priority to the industry for gas as well as electricity supply.

The meeting also appreciated the confidence of the President of Pakistan in industry and giving it top priority in resolving issues pertaining to industry, especially in Punjab.

The SNGPL and PEPCO, in spite of instructions from the President Asif Ali Zardari, are both curtailing industry supply to the textile industry. It has brought industry to a situation to take prudent decision not to run on alternate fuel during the disconnection of gas supply period for three days a week i.e. 12 days a month until May 2011.

This will bring production capacity down from 225,000 tons per month to 110,000 tons per month.

The members also noted that they have tried to serve the downstream industry by using expensive alternate fuel like diesel to make possible the vision of Chairman APTMA touching $14 billion export target this fiscal year but the alternate fuel like diesel cannot be used now to meet energy requirement for production till matter is resolved.

Therefore, the third largest spinning industry in the world is going to be incapacitated by 110,000 tones of yarn capacity in May, which is equal to 43 percent of total operation of the industry.

It may be noted that the spinning industry confidence survey has revealed that the ongoing crises has already resulted into closure of 29 percent production capacity in the country.

All Pakistan Textile Mills Association (APTMA)

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