ISLAMABAD: All Pakistan Textile Mills Association (APTMA) has sought Prime Minister’s help for restoration of gas to the textile industry as it is hurting exports.
APTMA’s Patron-in-Chief, Ijaz Gohar, in a letter to Prime Minister, Shehbaz Sharif stated that textile industry had achieved a new record in terms of exports reaching nearly $20 billion from $12.5 billion just two years ago. The fantastic growth was enabled by implementation of Regionally Competitive Energy Tariff (RCET), investment of over $5 billion in expansion and establishment of 100 new textile units resulting in enhanced export capacity of $500 million per annum.
“It is inexplicable that the exporting sector which has the capacity to deliver over $2 billion in exports per month is being denied energy/gas and consequently exports will be significantly lower, much to the detriment of Pakistan’s economy.”
According to APTMA, gas/RLNG to industry has been suspended from July 1, to July 8, 2022 with Eid holidays from July 9 to 14 July –a shutdown of a total of 15 days that will translate into a loss of at least $1 billion. More than 50 percent of output will be lost this month, with the very real risk of losing orders on a permanent basis as well as loss of repeat business due to delays in delivery of orders.
Gohar maintained that textile exports were expected to increase to $25 billion plus in the coming fiscal year and if that momentum was lost due to energy supply and cost constraints, Pakistan would be forced to seek additional $6 billion in loans from abroad which under the circumstances may not be possible. “Textiles have repeatedly delivered their commitments and proven that they are a viable and long-term solution towards economic stability.”
He requested that under these circumstances, gas/ RLNG supply of export-oriented industry be restored immediately.
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