Progressive decline in mercury is panicking the textile industry, as a drop in temperature below 10 degree centigrade would result into complete gas curtailment to the mills. It may be noted that the SNGPL has already slashed gas supply to the textile industry from five days a week to four days a week, inviting strong protest from the All Pakistan Textile Mills Association (APTMA) Punjab.
The industry fears further curtailment with gradual increase in temperature and finally a complete closure with abnormal drop in mercury. It may be noted that the Federal Petroleum Minister Dr Asim Hussain had dispelled the impression that the government would close gas supply to textile industry for 90 days during winter. He said these rumours were carrying no mass and the industry would be continued with present load management plan.
It is also worth noting that ongoing gas curtailment has made over 40 percent of the capacity redundant in Punjab. This situation is not only hitting the job situation but also the country's economy is compromising on exports. The textile industry had contributed record $14 billion exports last year when President Zardari had backed fully to the idea of gas supply to industry.
Talking to Business Recorder, the industry circles said tough time is likely to come ahead with drop in mercury from the middle of December. According to them, not only gas supply would be affected badly but the power supply would also be subdued due to canal closure during de-silt campaign. They said the industry would not be able to continue operations on power supply, as huge loadshedding spells would hinder it badly.
The industry has also received recent monetary policy with a great disappointment for no downward change in discount rate. The industry circles are apprehending increase in Non Performing Loans (NPLs) due to the factor in a situation when industry is running below capacity due to energy shortages.