KARACHI: Value-added sector on Thursday feared a 50 percent reduction in textile exports if the government fails to ensure uninterrupted gas supply to the industries.
“Textile export industries of Karachi contribute 52 percent share in the national
textile exports. Depriving of gas to the
textile industries means affecting of 52 percent of textile exports as well as foreign exchange reserves and revenue losses,” Jawed Bilwani, chairman of Pakistan Hosiery Manufacturers and Exporters Association (PHMA) said.
Textile export sector is compelled to work only six days a week due to weekly one-day industrial gas holiday by Sui Southern
Gas Company (SSGC) since last several
years. Competing industries in the
regional countries remain operational round the year.
“Now amid frequent low gas pressure the situation has further aggravated,” Bilwani added.
PHMA chairman said textile export industries are starving for the most essential raw materials – indigenous gas due to most frequent low pressure.
“It is most unfortunate that the situation of gas supply to the textile export industries is worsening every coming day which has brought disastrous effects on the export consignments.”
Bilwani said export production has been crippled and industries remained without gas from four hours up to 13 hours during 14 days out of 27 days in December.
Out of 27 days, export industries could not operate for 16 days up to its full capacity due to gas problem, which means industries produced 60 percent less goods.
“(This) may result in failure of exporters to meet their export commitments on time and cause colossal losses on shipments by air,” Bilwani said.
“Due to exorbitant cost of manufacturing as compared to regional competing countries, Pakistani exporters are already working on very narrow margin of profits.”
PHMA chairman said gas generators producing electricity time and again are
shut down owing to low gas pressure,
causing faults in the machinery and
electronic equipment and machinery programs get corrupt or damaged due to power fluctuation.
Resultantly, labourers sit idle for complete one shift and sometime two shifts.
“If the crisis situation prevails, many exporters fear colossal losses and (will be) compelled to shut down their industries.”
Bilwani slammed inefficient gas management. When SSGC was asked for the reason behind low gas pressure, it said compressed natural gas stations are operative and therefore the gas pressure is low.
PHMA chief said the sitting government has accorded priority to export sectors, including textile for supply of gas and also segregated it from general industry to enhance the exports.
“Nevertheless, SSGC is violating the government’s gas priority policy and instead supplying gas to other low priority sectors.”
Bilwani urged the government to direct SSGC to comply with the policy and supply gas to textile export industries on priority basis to save them from losses and closures.
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