Gas supply to Punjab industries remains suspended for 190 days

20 Jan, 2012

SNGPL suspended gas to industries located in Punjab for 190 days from January 2011 till to date that impacted 45 percent production of textile manufacturing meant for exports across the value chain, industrial sources told Business Recorder here on Wednesday.
They said almost 70 percent of textile industrial units in the country including the export dependent spinning, organised weaving, processing, knitwear, garments, etc are based in Punjab. They said gas supply had been suspended for 18 days in January, 16 days in February, 15 days in March, 15 days in April, 14 days in May, 13 days in June, 10 days in July, 10 days in August, 16 days in September, 13 days in October, 12 days in November, 20 days in December 2011 and now 19 days in January 2012 till to date.
Sources said that the gas supply disruption has had adverse impact on prospective export orders, withholding of investment decisions due to shortage of energy, workers' layoff and supply chain disruption losses. They said the forced closure of factories by gas load shedding caused quantitative decline in exports of textile manufactured products during the previous and the current financial years.
They said that alone in the month of November 2011, there was 70 percent quantitative decrease in export of yarn other than cotton yarn, 40 percent decrease in bed wear, 22 percent in towel, 94 percent in cotton carded or combed, 22 percent in cotton cloth and 11 percent in cotton yearn and 38 percent shortfall in knitwear exports. The export data of December, due to be released today is apprehended to be more depressing as gas supply to factories remained suspended for 20 days in the month, they added.

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