Gohar for removal of petroleum levy

01 Jan, 2012

Group leader All Pakistan Textile Mills Association (APTMA) Gohar Ejaz said on Saturday that the government should remove petroleum levy immediately and divert 300MMCFD gas to textile industry and IPPs equally. Addressing a press conference at the APTMA Punjab office, Gohar Ejaz was at the height of emotions, saying that industry was not built up in a day and it is the result of countless sacrifices over the decades.
He said the industry earned record highest exports last year, transferring Rs 300 billion to growers, as the government gave priority to textile industry. He said everyone in the textile value chain played due role without asking for any subsidy from the government. He expressed his wonders as why the government has backed out of its commitment when today the textile industry is providing jobs to 10 million workers.
He said textile industry has built up Pakistan but still it is being denied gas for last five days. He said the canal closure has further eaten up 5,000MW from the system. There was a similar situation last year but gas was available for five days a week to textile industry. What went wrong that industry in one province has been closed now, he questioned.
Domestic supply could be the priority of the government but what about the jobs of textile workers. Aren't jobs of these workers priority of the government, he posed a question. He further asked why the CNG pumps are being given priority against 10 million workers depending upon textile.
We have always supported the government but the government should decide about the industry generating $1 billion monthly. He urged the government that it should not close the industry. He said there could be thousands of alternatives to domestic and CNG needs but there is no alternative to jobs and investment in the country. According to him, viability of the industry cannot be purchased. We can control gas scarcity through winter tariff, he proposed.
He also pointed out that why the LNG has not been introduced to the system so far, which is a project of no more than six months. Why there is a delay of three years, he asked. There was no shortage if the LNG import was made possible within time.
He said the government was providing a subsidy of Rs 4 billion to three million vehicles through cheap fuel at CNG pumps while losing one billion dollar export monthly by denying gas to textile industry. We are not against the CNG pumps but we ask the government to clarify its priority on economic front, he said.
He expressed apprehensions that closure of textile industry would result into more NPLs and more defaults in textile industry. He said the textile industry was ready to fund $1 billion LNG project of 500MMCFD provided the government is serious on it. He said the industry closure is the biggest tax in his eyes. He further asked why Iran-Pakistan gas project is not being completed on war footing. These are not very complicated solutions to the problem, he wondered.
He said Dr Asim had assured APTMA for 3.5 days a week supply and the industry closed 50 percent capacity to compromise with the situation. But no gas was supplied to the textile industry on November 29, the resumption date for gas supply and instead SNGPL notified gas curtailment for indefinite period. He said China continued with supply to industry during crisis against Pakistan where industry has suffered first cut with start of crisis. He said leaders and media do character building of nation and now is the time to do so.

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