Aptma urges govt to restore gas supply to textile industry

LAHORE: All Pakistan Textile Mills Association (Aptma) Chairman Abdul Rahim Nasir on Wednesday urged the federal government to restore gas supply to the textile industry on an urgent basis, stressing that a loss of almost $1 billion in exports had already taken place due to unavailability of gas and closure of more than 300 textile mills.

Addressing a press conference at the Aptma House, Lahore along with Aptma North Zone Chairman Hamid Zaman, Senior Vice Chairman Kamran Arshad and Secretary General Raza Baqir, Nasir said that 26 per cent upsurge in the textiles export during the fiscal year 2021/22 was made possible only due to the supply of energy at a regionally competitive tariff.

The textile industry showed exemplary performance of boosting the textile exports from $12.5 billion in 2020 to almost $20 billion in 2022, registering a 60 per cent increase in exports.

The exponential growth in the textile sector has attracted investment of over $5 billion and the establishment of 100 new textile units, which, after becoming operational, would result in fetching additional export of more than $500 million/month or $6 billion/annum, he said, adding that the gas supply to industry has been suspended since June 30, 2022, which has almost halted production in the entire value-added textile industry, causing a colossal loss to the economy.

The large-scale closure of mills has resulted in massive layoffs and unemployment, spreading economic chaos, he said, adding that it is inexplicable that the exporting sector, which was committed to boost the textile exports to $25 billion during 2022/23 and over $2 billion/month, is being denied electricity and gas.

The incessant supply of gas was imperative for the textile industry to maintain the export momentum.

Hamid Zaman said that the textile sector has repeatedly delivered its commitment to enhance exports and proved that they are a viable and long-term solution provider for the economic stability of the country.

More than 50 per cent of the production 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.

For Zaman, currently the textile industry was providing goods for the forthcoming Christmas and any delay in the delivery schedule is fraught with risks of losing export markets for an indefinite period with little chances for revival.

“If this momentum is lost due to the energy supply and cost constraints, Pakistan will be forced to seek an additional $6 billion in loans from abroad, which under the current circumstances, might not even be possible,” he added.

Therefore, he said, under this situation, the gas supply to the export-oriented industry may immediately be restored.

Kamran Arshad highlighted the importance of the textile sector in the mainstay of the country’s economy and said that textiles have 61 per cent share in the country’s total exports and 40 per cent in the manufacturing sector employment.

The fragile economy of the country cannot sustain the consequences of closure of mills in the wake of non-supply of gas, he said, adding that if the present opportunity of exports is lost due to non-supply of gas, Pakistan would be forced to adopt heavy borrowing, which is not at all feasible due to the current scenario.

The government should restore gas to the textile industries without any further delay, he added.