In a sudden move all textile manufacturing, export-oriented and allied units have decided to go on strike for an unlimited period following government decision to enhance gas tariff, terming it 'last nail in the coffin'.
Industry sources said that textile manufacturers and exporters have decided to shut down their units from June 11, if the government would not continue research and development subsidy and recall its announcement of 31 percent increase in gas prices generally and particularly the increase of 68 percent for captive power.
"Textile sector is already on the verge of collapse due to constant increase in the cost of production in the wake of rising raw material prices, while on the other hand the government is continuously taking harmful steps, which would directly hit the exports", industry sources said.
They said that the government has raised petroleum price and gas tariff by 10-30 percent and 31 percent respectively during the last one week and the recent hike in different inputs has raised the industrial cost by 30-40 percent, whereas the government has not yet made an announcement about resumption of research and development (R&D) subsidy to industries. "After these harmful steps it is not possible for us to run the industries and face million of rupee losses. Therefore, we have decided to close down our textile units," they added.
"Our demands are to recall the increase in gas tariff by abolishing cross subsidy and continuation of R&D support till next few years and if demand would not fitful till June 10, we will go on strike from Friday", they said.
Textile exporters belonging to Faisalabad and Lahore have already announced strike form June 11 on these issues and now following them the Karachi textile industrialists have decided to close down their industries.
Sources said that the formal announcement of strike would be made on Monday in a joint press conference of different textile manufacturers and exporter associations. They said that representatives of Pakistan Hosiery Manufacturers Association, Pakistan Readymade Manufacturers and Exporters Garment Association, Pakistan Towel Manufacturers Association, Pakistan Silk Mills Association, Bead wear Manufacturers and Exporters Association, Cloth Merchants Association, Pakistan Cotton Fashion Apparel Manufacturers Association, All Pakistan Textile Processing Mills Association and other textile related association would address a press conference at PHMA house for the formal announcement of strike.
"Some one is misguiding the government when the country needs foreign exchange to bring down the rising trade deficit by boosting exports. The government is taking some negative steps, which would hurt exports, raising trade deficit and causing decline in foreign exchange", a textile industrialist said.
He said that with defiance the country's exports would come to a standstill, but as present textile industry has no other option. Textile is the single largest export sector, whose share in overall exports stands at 60 percent and it is providing 14 percent of employment, he said. However, he said, the increasing cost of production is badly hurting the industry and exports.