KESC's unilateral action: textile forum seeks Prime Minister's intervention

24 Mar, 2012

Karachi Electric Supply Company (KESC) has suddenly disconnected electricity to the manufacturing units of value-added textile sector without any prior notices despite they had paid all the utility bills, said Value Added Textile Forum (VATF) on Friday.
In a letter to Prime Minister Yousuf Raza Gilani, VATF Chairman Rana Muhammad Mushtaq Khan complained about the KESC's unilateral action of disconnecting power supply to the textile manufacturing units. He said the KESC had disconnected power supply to a large number of apparel manufacturing units without any reasons and prior intimation or notices, and termed the company's action as "draconian and irrational" step, despite the units had paid the electricity bill in full.
He cited the severe economic crisis, which had drawn the export-oriented value-added textile manufacturing units under the financial burden, saying all the units were struggling "hard" to survive on the global market in stiff competition against the neighbouring and regional countries.
He said the present circumstances, evolved as many facets because of the power and gas shortages to industry, besides the soaring utility tariffs along with fuel price hike had driven away the so-far permanent buyers of Pakistani products towards the neighbouring countries.
He said the exporters were endeavouring hard to retain their once established global markets and foreign buyers, as many of them with the passage of time had scaled down placing orders with Pakistani exporters for these reasons. "Not only our exporters are facing very tough times today in retaining their once established markets and buyers who are rapidly deserting them and going to neighbouring and other competing countries with their orders," Mushtaq Rana showed concerns.
He said Punjab exporters were hit first as the province exports had seriously fallen down due to a severe shortage of power and gas load shedding, while Karachi ones subsequently faced with the same problem. VATF Chairman said Karachi had 50 percent exports share of the country's total textile exports to its credit and the power disconnection in the metropolis to the manufacturing units would put billions of dollars textile exports at stake. He said the continued power cuts to industrial units could deprive the national exchequer of much needed foreign exchange. He appealed to the Prime Minister for intervention to solve the issue.

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