Minister assures of pursuing issue of non-supply of gas to export industry

LAHORE: The issue of gas supply cut off to export oriented units in Punjab will be addressed with the federal government at all appropriate levels, an official said.

Punjab Finance Minister, Hashim Jawan Bakht has assured the All Pakistan Textile Mills Association (Aptma) of pursuing the issue of non-supply of gas for export oriented units in Punjab while admitting that it has caused a colossal loss and disruption to the textile sector.

The Minister was talking to the Aptma delegation led by its central chairman Abdul Rahim Nasir, northern zone chairman Hamid Zaman, senior vice chairman Karman Arshad, treasurer Asad Shafi, Umar Latif and secretary general of the association Raza Baqir.

Rahim Nasir briefed the minister about gas supply cut off to all Punjab based mills despite the fact that the mills have accepted enhancement of gas tariff up to $9/mmbtu till March, 2022.

He said non-availability of gas has severely affected production and export of textile products, while highlighting the disparity in gas prices between Punjab and other provinces.

Nasir added that the upward revision in gas tariff from $6.5/mmbtu to $9/mmbtu has further widened the gulf of price difference.

He pointed out that gas prices in Sindh and Khyber-Pakhtunkhwa were $4.87/mmbtu, whereas in Punjab, it has been raised to $9/mmbtu and gas is not at all available even on the said high tariff.

The Regionally Competitive Energy Tariff (RCET) provided by the current government over the past three years has yielded outstanding results. The industry has delivered to the nation by investing Rs450 billion in machinery for capacity enhancement as per commitment, he said.

This has resulted in an increase of $500 million in exports each and every month in FY22 so far. He apprehended that the new projected investment of $5 billion, setting up of 100 new plants and addition of at least 500,000 new jobs with 90 per cent of them in Punjab, would all be jeopardised with this sudden increase in gas tariff.

Aptma chairman also urged the provincial government to take up the matter of non-availability of gas with the federal government to enable export oriented industries located in Punjab to continue their operations.

Northern zone chairman Zaman apprised the minister about the problems being faced by exporters due to non-supply of gas and sheer mismanagement in the gas distribution priorities.

The minister assured Aptma of fullest support from the provincial government to make the export industry operate in its full bloom and to make gas available to them to continue their business activities.

Bakht said that the provincial government would leave no stone unturned in supporting smooth functioning and growth of the export industry to maintain the momentum of upsurge in exports.

He said that the government has pinned high hopes on the export-oriented sector for creation of jobs and new investment in the country, adding that the issue regarding disparity on energy prices within the country would also be taken up with the federal ministries to provide even playing field to Punjab based mills.

Aptma senior vice chairman Kamran Arshad thanked the minister in particular and the provincial government in general for their bold initiatives in resolving the issues faced by the industry and hoped that, with the continued support of the government, the whole textile sector would make all out efforts to promote further investment in textile sector and upsurge textile exports.

He also vowed the commitment of the industry to accelerate economic activities to bring new investment, create more jobs and to foster exports provided energy requirements of the industry are met with uninterrupted supply of gas and electricity at regionally competitive energy tariffs.