All Pakistan Textile Mills Association (APTMA) Chairman Mohsin Aziz has expressed concerns over drop worth $305 million in exports of textile quantity in December 2011, when juxtaposed with the corresponding period of last year. He said unprecedented energy shortage was the major reason behind the substantial drop in exports. According to him, the situation may be even more alarming further in the month of January, as Punjab textile industry is being denied electricity and gas supplies since December 25. He said textile exports were 40 per cent down in December 2011 in quantity terms. In November 2011, textile exports were also 32 per cent down in quantity terms, he added.
It may be noted that exports of cotton yarn, cotton cloth, other yarn, knitwear, bed wear and towel are declined by 23 per cent, 26 per cent, 44 per cent, 38 per cent, 33 per cent and eight per cent respectively in the month of December 2011, causing a loss of $305 million to the exports. APTMA Chairman said customarily textile industry crossing $1 billion mark on a monthly basis but it has becoming impossible to reach that mark over the last three months. He said APTMA is repeatedly showing concerns over the situation, but unfortunately all of its hue and cry was falling on deaf ears of the policy makers. He deplored that government was not addressing the causes behind export drop.
Mohsin said government’s policymakers were not serious in resolving gas supply issue of the textile industry. Instead, he lamented that available gas is being supplied to unproductive sectors and segments, causing a loss in terms of foreign exchange.
He said the situation is becoming unbearable for industry and a constant inefficiency was plaguing the viability of production units. Textile industry is heading towards disaster due to non-availability of energy, he added.
He said textile industry has lost $1 billion exports in first half of current fiscal and is likely to lose another $2 billion in second half of it. This drop in exports would have dire impact on economy with current account balance and Pak rupee value already under pressure.
He said while the industry was committed to achieving $16 billion worth of exports during current fiscal, it would not be able to achieve more than $12 billion exports if energy crisis persists. Mohsin further said interest rate is also highly unaffordable, causing negative impact on industry. He said textile industry is a premier industry of Pakistan earning foreign exchange and providing jobs to millions of workers. APTMA Chairman urged the president and prime minister to take stock of the situation and ensure smooth supply of electricity and gas to textile industry immediately to avoid further loss of exports. Managing director PEPCO Rasul Khan Mahsud said that the government has arranged sufficient fuel supplies after which the power generation has increased from an average of 8500 MW to 9500 MW, stating that load shedding would reduce with induction of hydel power in few days. He was addressing members of the All Pakistan Textile Mills Association on Monday. He said hydro electric generation would resume in the next few days that would add another 2000 MW in the system.
