The Punjab based textile industry circles have urged the government to focus on the revival of productivity once prevailing uncertainty comes to an end. They said the endurance of the Punjab based textile industry is under serious threat due to the prevailing political uncertainty amidst unprecedented electricity loadshedding and repeated gas supply suspensions to the mills.
According to them, the industry needs immediate attention of the government, as continuity of the industry wheel can be the only way forward of growth, employment and exports of country. Both energy affordability and security must be ensured at all costs, they said. It may be noted that Chairman APTMA Punjab had pointed out in pre-long march scenario that the industry was losing 26 million dollars per day due to the political deadlock. He had made it clear that the industry was not in favour of aligning with any sort of agitation despite rising frustration on the part of textile millers, workers and other stakeholders.
The industry circles are hopeful that the government would initiate damage control activities soon after the uncertainty will over. Otherwise, they said it would lead to further closures, lay-offs and exports. It is in the larger interest of cotton farmers and the textile workers that the government should kick off revival operation of the Punjab-based textile industry, they stressed.
According to them, the Punjab textile industry is paying the cost of the prevailing uncertainty in terms in terms of energy shortage and high cost of available electricity and gas. Further, they said, the road blockades are causing losses and withholding of containers has affected the dispatch of export consignments. The foreign buyers are looking towards Pakistan with shattered confidence due to 14 hours a day electricity loadshedding and 12 hours a day gas supply suspension. The energy cost has also increased manifold, as net cost of electricity has risen to 67 percent and the net cost of gas has jumped by 37 percent over the last one year, they added.
The Punjab textile industry has a share of eight percent in the country's GDP, as 70 percent of total textile capacity locates in Punjab with 10 million direct and indirect workforce. Meanwhile, the banking industry is extending capital at a higher cost of 14 percent and more than 40 percent production capacity has been impaired and exports of basic textile have witnessed decline. So far, about 100 mills have closed down operations and the remaining ones are running their operations partially. No fresh investment and industrialisation is taking place, relocation of industrial units is on the cards. The government should revive the Punjab based industry by allocating additional 200MMCFD gas for generation for 1000MW electricity through in-house CPPs. Also, they said, the government should exempt mills from loadshedding having no alternate source of energy till the provision of gas connections.