Ministry of Textile Industry on Wednesday expressed serious reservations over the power suspension to the textile industry and urged the Ministry of Water and Power and Petroleum and Natural Resources to review the new load management plan under which power has been suspended to the industry, it is learnt.
Well placed sources in the Ministry of Textile Industry revealed to Business Recorder that Textile Ministry had approached both the ministries, arguing that as per the Textile Policy (2009-14), the government had agreed to exempt the textile sector from power and gas loadshedding. This industry contributes about 80 percent to total export earnings of the country, directly or indirectly, therefore the new plan under which power and gas supply has been curtailed to the industry should be reviewed and energy supplied as per commitment.
The Ministry of Water and Power has disconnected power supply to all large- to medium-scale factories of Punjab for an indefinite period, where 80 percent textile industry of the country is located. Power suspension has forced the industry to close down all industrial units all over the province which would lead to massive decline in textile exports.
The energy suspension would also disable Pakistan from fully utilising the European Union (EU) preferential trade deal, senior officials of the Textile Ministry and industry's sources revealed. EU preferential trade package for Pakistan began implementation on November 15, where 75 items were granted duty-free market access out of which 64 are products from the textile sector. Out of the total 64 textile items, 16 items are subjected to Tariff Rate Quota (TRQ), while the remaining 48 items are under a 25 percent quantity increase cap based on average of last three years export.
Industry sources blamed Federal Secretary for Water and Power Nargis Sethi for the energy crisis, saying she brutally informed All Pakistan Textile Mills Association (APTMA) that domestic consumers were the top priority of the government and not industrial sector therefore power would remain suspended indefinitely.
APTMA Chairman Ahsan Bashir told Business Recorder that of the total 14 billion dollars textile exports of the country, industry located in Punjab contributed to the tune of 10 billion dollars. However due to the energy crisis, the industry would not be able to meet the export target and foreign customers' orders. The industry would suffer a loss of 850 million dollars, if power supply remained suspended for one month, besides millions of people would lose their jobs, Bashir added.
APMTA has given December 28, as dead line to the government, and if the government failed to restore power supply to the industry, countrywide protests would be launched. Textile industry requires 1,500 MW to operate and pay full charges without any line losses. However the government instead of generating power, cut the supply to industry to meet domestic consumers requirements, Bashir accused the government.