APTMA For Restoring Gas Supply To Textile Industry

All Pakistan Textile Mills Association (APTMA) Chairman Abdul Rahim Nasir on Wednesday urged the federal government to restore gas supply to textile industry on an urgent basis

LAHORE, (UrduPoint / Pakistan Point News - 6th Jul, 2022 ) :All Pakistan Textile Mills Association (APTMA) Chairman Abdul Rahim Nasir on Wednesday urged the Federal government to restore gas supply to textile industry on an urgent basis.

Addressing a press conference her at APTMA House, he claimed that a loss of almost US $ one billion in exports has already taken place due to non-availability of gas and closure of more than 300 textile mills.

APTMA North Chairman Hamid Zaman, Senior Vice Chairman Kamran Arshad and Secretary General Raza Baqir also accompanied him.

Rahim Nasir said that 26 percent upsurge in export of textiles during fiscal year 2021-22 was made possible only due to supply of energy at regionally competitive tariff. He added that textile industry showed exemplary performance of uplifting textile exports from US $ 12.5 billion in 2020 to almost US $ 20 billion in 2022 registering 60 percent hike in exports.

Rahim said exponential growth in textile sector has promoted investment of over US $ 5 billion and establishment of 100 new textile units which, when become operational, would result in fetching additional export of more than US $ 500 million per month or US $ 6 billion per annum.

He pointed out that gas supply to industry has been suspended since June 30, 2022 which has almost halted production in the whole value added textile industry causing colossal loss to the economy. He asserted that large scale closure of mills has resulted in massive layoffs and unemployment spreading economic chaos.

Rahim Nasir said that it is inexplicable that the exporting sector, which was committed to uplift textile exports to US $ 25 billion during 2022-23 and over US $ 2 billion per month, is being denied energy/gas.

He said that incessant supply of gas is imperative for textile industry to maintain momentum of export.

Speaking on the occasion, Chairman APTMA North Hamid Zaman said that the textile sector has repeatedly delivered its commitment to enhance exports and proven that they are a viable and long-term solution provider for economic stability of the country.

He apprehended that more than 50 percent of output will be lost this month with the very high risk of losing orders on a permanent basis and diversion of buyers from Pakistan to its competitors.

Zaman continued that currently textile industry is providing goods for the forthcoming Christmas and any delay in delivery schedule is fraught with losing export markets for indefinite period with little chances for revival.

"If this momentum is lost due to energy supply and cost constraints, Pakistan will be forced to seek an additional US $ 6 billion in loans from abroad," he stated.

Therefore, he said, under these circumstances, the gas supply to export oriented industry may be restored immediately.

Kamran Arshad, Senior Vice Chairman highlighting importance of textile sector in the mainstay of country's economy stated that textiles have 61 percent share in country's exports and 40 percent of manufacturing sector employment.

Kamran Arshad urged the government for adopting correct policy and restoration of gas without any further delay.