Gas shortage compels the closure of textile units
Monday, January 2nd, 2012 2:16:36 by Farhan Hameed
Despite of country wide protests, the government of Pakistan has still not come up with a substantial plan for the distribution of natural gas to industrial and domestic users. Textile is just one of many industrial sectors which are facing grave losses
due to insufficient supply of gas and the All Pakistan Textile Mills Association (APTMA) has claimed that this disconnection of gas to their mills is ravaging their business in the worst manner.
APTMA has expressed its concerns over the shortage of natural gas and stated that a number of textile units have been closed due to staggering production losses, especially in Punjab. The textile mill owners are facing severe problems in meeting their production
targets and they are afraid that such circumstances might cause them to lose their export contracts due to failure of delivery on time.
Aptma President Mohsin Aziz said in a press release here on Friday that the policy of suspending gas supply to textile units in Punjab for one more month in addition to the routine stoppage for 150 days every year would render several units unviable, risking
them to suffer closure.
“The industry is presently facing a 30 per cent production loss,” said Mr Aziz, adding the sector is at risk of suffering a capital cost loss of $15 billion alone in Punjab as several textile units in the province will not remain economically feasible because
of the discontinuation of gas supply to the sector
The suspension f gas to the textile mills has raised a huge risk to their survival. The sector is already under pressure by high interest rates and prolonged electricity outages across the country are making the circumstances even worse for the textile mill
owners.
The State Bank of Pakistan, said Mr Aziz, in its latest report had already mentioned that a massive decline in spinning and finishing related industrial activities because of the closure of a several number of textile units had resulted a 36 per cent decline
in export quantitative figure. This would result into a $2 billion decrease in exports during the current financial year, added Mr Aziz.
Short URL: https://www.newspakistan.pk/?p=7968
Posted by Farhan Hameed
on Jan 2 2012. Filed under Business, Pakistan.
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