A high level committee of Faisalabad Chamber of Commerce and Industry (FCCI) is being nominated to represent the textile sector during an exploratory meeting of Senate Standing Committee on textile industry.
The three-member committee will plead the case of the textile sector and will convince government authorities to restore the prioritized status towards the smooth supply of gas to the industry which stands at the brink of collapse due to a weekly, three days gas holiday in the region.
Members of Senate standing committee on textile Industry, during their fact-finding visit to Faisalabad have assured the local textile exporters and manufacturers that the committee will probe into the multi-pronged textile crisis exacerbated by gas load shedding in Punjab.
Textile industry major contributor to exports: Senator General (R) Javed Ashraf Qazi and Senator Haji Adeel were in Faisalabad to have a first hand knowledge of the problems faced by the textile industry that is undoubtedly the biggest source of foreign exchange earning to the national economy. They were told that textile industry contributes about 60 per cent of total exports and 8.50 per cent of GDP. Pakistan is the 8th largest exporter of textile products providing employment to 38 per cent of the total work force. Speaking to the FCCI members representing various components of textile manufacturing including yarn spinning, weaving, dying, processing, printing, sizing, power looms, hosiery and exporters, Senator Qazi said that during their visit to Faisalabad, they have seen a number of top industrial units of the city and he has practically realized the depth of the problem. “We confidently acknowledge that textile is undoubtedly the main export earner of Pakistan’s national economy”, said Senator Qazi. “It is an objective fact that any step that hurts the interests of textile will ultimately hurt our national economy”, he remarked. “A thoughtless policy of issuing permits for CNG stations in the past has deteriorated the problem one step further”, he added. He was of the opinion that until the supply of gas from Iran or Turkmenistan is regularised, they will have to manage this shortage through prudent use of gas resources. He assured FCCI members that Senate Standing Committee will do its level best to highlight the textile problem at the highest level. “You have to keep in mind that Ministry of Petroleum and Natural Resources is the appropriate authority who can direct the Sui Northern Gas Pipelines Limited (SNGPL) to cut down the existing 3-day weekly gas load shedding to 2-days only for commercial consumers”, he clarified. He announced that the standing committee will summon the Ministry of Petroleum and Natural Resources officials in a meeting and will hear their standpoint in this context. The FCCI committee, during the joint meeting, will be asked to spell out their demands before the Ministry officials who will be asked to clarify their position to settle the issue.
Use of solar energy to resolve energy crisis: He suggested that Pakistan must develop a strategy to optimize the use of solar energy through the use of advanced solar architecture and urban planning methods which are being used by the other countries. He proposed that the use of CNG gas must be limited to public transport only and private cars should use petrol instead of CNG to economize on the use of gas so that it can be spared for the industry. On the occasion, FCCI members were asked to address their concerns before the Senators. All Pakistan Textile Processing Mills Association Chairman Muhammad Saeed Sheikh said that Pakistan is already in the grip of an energy crisis and the proposed supply of gas from Iran or Turkmenistan may take several years. “By the time we overcome the crisis, we will be 20-25 years behind the world”, he feared. Pakistan Textile Exporters Association Chairman Waseem Latif said that industrial sector must be put before the fertilizer and CNG sectors in the distribution mechanism. Presently, the industry comes fourth in priority after domestic consumers, fertilizer plants and CNG stations. President Textile Sizing Association Shakeel Ansari said that interruption in gas supply to industry is tantamount to a drone attack on the economy of Pakistan. The entrepreneurs protested that out of 365 days during last year the industrial sector got only 140 days of gas supply. They were unanimous in their claim that the intensity of the gas crisis was much bigger in effect, than the electricity outages.
Entrepreneurs closing down business: It was disclosed during the meeting that in the wake of the energy crisis, a number of Faisalabad-based industrialists have moved their capital to Bangladesh and have set-up industrial units there. They said that more Pakistani investors were thinking about leaving the country to other parts of the world. Bangladesh was considered as an ideal place due to cheap labour and uninterrupted electricity supply. According to a comparative study, a skilled Bangladeshi worker’s salary is equal to 70 US Dollars (Rs. 6020/) per month as compared to Rs 20,000 in Pakistan. Similarly, unskilled workers in Bangladesh get US Dollars 35 per month which is half of what Pakistani labourers are earning. Ministry of Textile Secretary Shahid Rasheed gave the details of his ministry’s initiatives taken to redress the grievances of the textile sector but his version was termed unsatisfactory by FCCI members during the meeting. A presentation on textile issues was given by executive member FCCI Zafar Iqbal Sarwar depicting energy problems, financial issues and security situation that are casting a negative impact on the industry. A number of proposals were given to resolve this crisis. The standing committee members was told that Pakistani exporters have to travel to Dubai to negotiate business deals with their clients.
Need to gain duty free access in US and EU markets: Javed Ashraf Qazi said that instead of resorting to foreign aid, we must launch advocacy campaign to get duty free market access to European Union and America. He suggested the FCCI to set-up a private Cotton Research Centre in Faisalabad to discover the means to enhance per hector cotton yield. “Through research, India is able expand its yield 8 times higher than Pakistan”, he said. Speaking on the occasion, Senator Haji Adeel told the audience that industrial units of Khyber Pakhtunkhwa (KPK) are closed due to army operation in the province whereas the Punjab industry is suffering heavy losses due to gas load shedding. “The reasons might be different but the impact is the same”, he said. “Therefore, reason dictates all of us to get together and have a united stance against these national problems”, he said.
