Prime Minister Nawaz Sharif''s key Ministers are reportedly scuffling with each other on the issue of gas supply to Punjab-based textile sector during winter months, well informed sources told Business Recorder. According to sources, Minister for Finance Senator Ishaq Dar, Minister for Textile Industry, Senator Abbas Khan Afridi and Commerce Minister, Engineer Khurram Dastgir are siding with the textile sector whereas Minister for Water and Power, Khawaja Asif and Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi are opposing supply of gas to Punjab-based textile sector in winter months.
On Friday, Prime Minister Nawaz Sharif constituted a ministerial committee comprising Ministers for Water & Power, Khawaja Muhammad Asif, Petroleum & Natural Resources, Shahid Khaqan Abbasi and Textile Industry, Abbas Khan Afridi after Minister for Water and Power, Khawaja Asif registered a strong protest in the concerned quarters on resumption of gas supply to Punjab-based textile sector during winter.
On Thursday, Finance Minister had suspended gas load management for Punjab-based textile industry after a detailed meeting with an All Pakistan Textile Mills Association (APTMA) delegation. The Commerce Minister also sided with APTMA, saying that with suspension of gas to textile sector, Pakistan will not be able to derive benefits from the GSP plus in real terms.
"Exclusion of Commerce Minister from the committee means that Khawaja Asif has prevailed," said an official on condition of anonymity. Khawaja Asif, sources said, is of the view that since the government has ensured electricity supply to the industry in Punjab including textile sector, gas quota of textile sector will be utilised for power generation.
On the other hand, Ministers for Finance, Commerce and Textile Industry argue that suspension of gas supply to Punjab based textile sector will double its production cost, which implies that textile industry in Punjab will be at a disadvantage as compared to textile industry established in other provinces and in addition exports of the country would be negatively impacted.
Textile sector, sources in Textile Ministry stated, has proposed that the government should follow the same formula of gas supply it implemented last year. The Finance Minister, sources said, promised the textile sector twice to settle issue of gas but he apparently was not in a position to take any such decision single-handedly. Textile sector of China, Bangladesh and India are getting electricity at 8 cents per unit. In Sindh and KPK the price of electricity is also 8 cents because they generate electricity on gas. On the other hand, textile sector in Punjab is getting electricity at Rs 14.50 per unit and with a 30 percent electricity generated through gas the price is Rs 12.50 per unit. "Our industry is on a destructive path because of massive price difference within and outside country. We are facing a difference of Rs 82 billion. Exports have come down," lamented an office-bearer of All Pakistan Textile Mills Association.
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