Textile sector in a quandary: power shortages in Punjab become more formidable

Power shortage in Punjab entered a critical phase, making it extremely hard for the local manufacturers to cater for the global textile demand of over $2 billion for 2013, exporters said on Monday. "For around last two weeks, export-oriented industries are not receiving electricity in Punjab's top industrials cities including Multan, Sialkot, Faisalabad, Gujranwala, Lahore etc," they said.
Exporters said the continued suspension of industrial production is feared to force the manufacturers to downsize workers. "The downsizing fear has also created discontent among labourers who have started violent protests in different areas of the province," they added.
The textile industry fears diversion of country's share of at least $2.5 billion in global orders towards India, Bangladesh and China for 2013. "Other nations are looking for Pakistan share of at least $2.5 billion for 2013 as the country's 70 percent textile exporting industry is facing power shortage," they said.
By singling out Punjab for load shedding, they said, the PPP-led government has adopted "revenge" path against the country's largest province. "Despite the fact that industries in Punjab generate huge employment, besides having share of 70 percent of the country's total exports, the province has been the victim of federal government's biased policies," they said.
Knitwear, home textile, readymade garments are largely exported from Punjab, where electricity is suspended for last two weeks, Chief Co-ordinator, Pakistan Readymade Garments and Exporters Association (Prgmea), Ijaz A Khokhar told Business Recorder on phone from Sialkot.
"Federal Secretary Water and Power Ministry is responsible for creating the mire for Punjab's industries and has deliberately switched off electricity for antagonistic politics," he said. Appealing to the Chief Justice of Pakistan for suo motu action, the Sialkot based industrialist said "situation in Punjab is getting critical" with each passing day...there's been electricity shutdown for nearly two weeks, he added.
"The EU and US buyers, who generally place orders for textile products with Pakistani exporters, are closely monitoring the situation in Pakistan," he said, adding that "the country may lose its bigger chunk of export by around $2.5 billion this fiscal year, if situation did not improve."
The power cuts have badly hit the entire textile chain, he said, adding that the outages have caused a virtual blow to the spinning, weaving, dying and finishing units and their ancillary industries. Khokhar, who is also key garments exporter, showed concerns over the "possible" diversion of billions of dollars international orders from Pakistan to India, Sri Lanka, Bangladesh, Vietnam and China as there are no signs of improvement in power supplies to industries.
"The winter power load shedding is untimely in Punjab," he said, adding that like other three provinces are having ample supplies of electricity for their industries, the government should ensure the basic utility to manufacturers in the country's largest province.
"Patoki and Bhaipheru industrial units of weaving, dying and spinning are altogether closed on Multan Road, Lahore, Gujranwala, Faisalabad, etc, because of no power supplies to operate," he said. Estimating the negative impact on the country's fiscal textile exports, the chief co-ordinator of Prgmea said there are indications that the industrial productions will not be higher this fiscal year, compared to last fiscal year.
"The country's exports are feared to plunge by $3 billion to $11 billion this fiscal year because of a number of issues top of it are power and gas shortage," he said. He said exporters are unable to chalk out their plans for 2013 because of uncertainties in the country, adding that the foreign buyers, keeping in view these problems, are reluctant to place orders with local exporters. "International buyers are unwilling to finalize deals with local exporters," he added.
Exporter said Punjab Chief Minister Mian Shahbaz Sharif is 'toothless' before the 'strong' federal government to solve problems for the residential and industrial users of electricity. "No one in the federal corridors of power is willing to pay attention to the problems of Punjab," he maintained. The loss to exporters will have negative impact on the federal revenues as well, he warned, adding that there was need for taking quick decisions to improve the situation in the province.