PESHAWAR: All Pakistan Textile Mills Association has expressed concern over the disconnection of gas supply to textile mills, particularly in Punjab, exposing several units to experience closure due to staggering production losses.
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 of gas supply to textile mills, he added, had compounded threats to their survival as they had already been hit hard by high interest rates and prolonged power outages across the country.
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.
“On hand there is a hue and cry about the declining foreign exchange earnings and increasing unemployment in the country, on the other the very source of improving foreign exchange earnings and creating more jobs textile sector is being choked to death systematically,” said the Aptma chief.
He took exception to the provision of gas supply to CNG filling stations and said textile sector, which was `the bread earner of the nation`, was being `strangulated` at the cost of CNG stations.
He said CNG stations were consuming 300 mmcfd and were provided gas without disruption.
He apprehended the suspension of gas supplies to industries would pushed their owners to the wall and they would not be able to pay their bank loan installments, rendering them to become defaulters.
He demanded of the federal government to exempt Aptma members from repaying their monthly bank loan installments for six months to help them remain economically viable.
He warned that if their `genuine` demands were not met they would be compelled to go on a hunger strike.
0 comments:
Post a Comment