A loss of almost $1 billion records in exports because of shortage of gas. It has been instructed to federal government by the APRMA (All Pakistan Textile Mills Association) chairman, Abdul Rahim to restore the gas supply to textile industry on priority basis.
He informed in a press conference that over 300 textile mills have been shut down because of cut in gas supply. He added further that 26% of increase recorded in export of textile during fiscal year 2021-22 was made possible only because if the supply of energy at a regionally competitive tariff.
Increasing textile exports from $12.5bn in 2020 to nearly $20bn in 2022, a 60pc increase is an admirable performance of textile industry, He informed.
He further said that the investment bas been promoted with the rapidly growth in the textile sector over $5bn and the formation of 100 new textile unit which results in additional exports of $6.0bn per year after being operational.
Mr Nasir highlighted that the interruption of gas supply to industry for a week results to a near shutdown of production in the entire value-added sector, resulting severe damage to the economy.
He further added that the closure of large scale mills resulting in massive downtime and unemployment, sowing widespread economic disorders.
He surprisingly said that the exporting sector, which gave an outcome with an increase textile exports to $25bn by 2022-23, is being denied energy and gas. He believes that a continious supply of gas is important for the industry to maintain export momentum.
Textile sector has a history of growing exports and providing steadiness to the economy, said by Mr. Zaman.
He notify that they will lose approximately half of their output this month if the current situation still persists.
However, textile firms are currently making goods for the upcoming event of Christmas, any delay in delivery schedule could results in losing export markets for an unknown period of time, he stated further.
Pakistan will be facing an additional $6bn loans from abroad, if the same drive not keep going on due to energy supply and cost constraints. Which might be not possible under the current situation.
Restoration of gas supply to export oriented industry and how important it is, issue highlighted by him.
61% of exports and 40% of employment in the manufacturing sector clasp under textile sector as it plays an important role in the economy of Pakistan.
Due to gas shortage and non-supply would have a ruining effect on economy as if mills got closed.
