Textile mills: 'gas supply diversion to effect $1.2 billion per month exports'

The Punjab-based textile industry has welcomed the government decision of shutting down Rousch Power Plant to divert 85MMCFD gas to textile industry during winter, saying that it will earn $1.2 billion per month foreign exchange through exports of textile products.
According to these circles, this step would bring more confidence on the part of investors who are ready to invest billions of dollars in Pakistan's textile industry subject to availability of uninterrupted energy, including electricity and gas, supply to the mills, particularly those situated in the province of Punjab. It may be noted that the Punjab-based textile mills are facing unprecedented energy shortage since November 2007, resulting into closing down of over 40 percent of the capacities. Also, the Punjab-based value-added textile industry is crying for energy when the European Union has extended much-awaited GSP-Plus status to Pakistan. This facility was likely to add one billion dollars to exports of Pakistan. However, the government inability to provide energy has hampered the growth in exports.
Earlier, the energy supply constraints have pulled the exports down substantially, leading to a notice by the Prime Minister Nawaz Sharif who instructed Federal Finance Minister Ishaq Dar to engage stakeholders for a solution. Accordingly, the Ministry of Petroleum & Natural Resources as well as the Ministry of Water & Power have decided to take measure for maximum energy supply, particularly gas, to Punjab-based textile mills.
Textile industry circles have expressed the hope that the government would stand by its commitment of providing energy during the crucial period starting from December 15 until February 15 by discouraging all types of propaganda by the opponents. They said that measure would keep the jobs of industry workers intact besides brining further investment to the textile sector.