Chairman All Pakistan Textile Mills Association (Aptma), Gohar Ejaz has strongly opposed the renewal of contracts for gas supply to the Independent Power Plants (IPPs) under Gas Supply Agreements (GSAs) expiring on June 30th, 2011. The chairman Aptma further said that the government should ensure seven days a week gas supply to the textile industry from July 1st.
These IPPs were being provided with gas on priority basis as a result the textile industry endured gas curtailment for 71 days in winter and 39 days in summer, which has adversely impacted production. Addressing a press conference at the Aptma Punjab office on Tuesday, he said if uninterrupted supply to the textile industry is not ensured from July 1st then the industry would not be able to procure forthcoming bumper cotton crop, expected to the tune of 16 million bales this year. He added that the textile industry performed last year on the free market mechanism and achieved record textile exports worth $14 billion. He said the textile industry would have to face gas curtailment for 164 days during the preceding year in case three days a week gas curtailment continues.
It may be noted the contracts for gas supply to the IPPs under GSAs are being expired on June 30, 2011, leaving 140MMCFD gas equivalent to the shortage being imposed on the textile industry. This could lead to large-scale lay offs, production and investment decline.
The chairman Aptma said that yarn export has registered a decline of 20 percent during current fiscal year due to energy shortage. It was not possible for the textile industry to function with three days a week gas curtailment so the government should immediately strike a balance in gas supply to different stakeholders. He also objected discriminatory gas supply to a fertiliser company when there is no increase of additional gas generation of 100MMCFD from the Qadirpur Gas Field, as stipulates the contract with the company. The chairman Aptma said the textile industry has potential to achieve $20 billion exports next fiscal year so this is high time for the decision-makers to provide energy to the textile industry.