The textile ministry has convened a meeting of textile sector on January 6 to formulate strategy on gas load management amid the prevailing worst-ever power and gas loadshedding which has brought the sector on the brink of closure.
Sources privy to the developments confided to Business Recorder that the policymakers in Islamabad have made up their mind to distribute available gas equally to the textile sector, particularly the export-oriented units, and CNG stations. It is learnt on good authority that the gas consumption of export-led units in Faisalabad and Lahore is 50 mmcfd each.
Therefore, partial closures of CNG stations may resolve the problem in hand, as 100 mmcfd gas for export-led units in Faisalabad and Lahore would be sufficient out of available quantity of 200 mmcfd gas. "A partial closure of CNG stations would ensure smooth running of export-led textile units and the policymakers are likely to adopt this decision in the January 6 meeting," said the sources.
The spinning, weaving and processing units have warned a complete closure from January 10 onwards. Also, the readymade garment manufacturers have also decided to side with the spinners and weavers. One textile exporter from Faisalabad Mian Naeem-ul-Haq has warned self-immolation in case the government fails to bail the industry out.
The Federal Advisor on Textile Dr Mirza Ikhtiar Baig confirmed the January 6 meeting and the likely decisions in it. According to him, the Mumbai attacks of November 27 have invited multifarious problems to Pakistan''s economy, as the country''s exports, investment and privatisation initiatives are hit hard since then. He said the ongoing power and gas crisis has crippled the industry and closure of textile units is resulting in massive unemployment in the country.
He said load shedding in Faisalabad has increased to 12 days from earlier span of five to six days and shipments of export-led units are disturbed immensely. According to Ikhtiar, the buyers were demanding supply of their orders by air, causing huge losses to exporters due to high airfreight.
Dr Baig said he has taken up the issue with the petroleum ministry as well as Sui Northern Gas Company management and urged them to introduce emergency measures to deal with a crisis like situation. According to him, SNGPL authorities have agreed to redesign load management, with partial closure of CNG stations to ensure gas supply to export-led textile units.
Similarly, he said, the captive power units being run on furnace oil would also be asked to avoid gas consumption during the low-pressure periods. Dr Baig also appreciated the Federal Minister for Water and Power Raja Pervaiz Ashraf for his decision to ensure uninterrupted supply of electricity to eight feeders in Faisalabad, supplying electricity to export-led textile units.