Textile millers seek priority gas supply in winter

KARACHI: Textile millers demanded the government to prioritise the export-oriented industry in Sindh and Balochistan for gas supply so they were not forced to shut down and could continue generating electricity from the fuel during winter.

Reacting to Sui Southern Gas Company (SSGC) notice that gas supplies to all local industrial customers for power generation were being suspended for three and a half months, All Pakistan Textile Mills Association (APTMA) urged Prime Minister Shahbaz Shareef and Sindh Chief Minister Murad Ali Shah to intervene in the matter.

APTMA Southern Zone Chairman Zahid Mazhar urged the PM and Sindh CM for intervening to save the export-oriented textile industry of Sindh and Balochistan from complete closure in the backdrop of gas supply stoppage from November 15, 2022 to February 28, 2023.

Mazhar said that APTMA member mills were very disturbed after receiving the SSGC notices of gas closure for three and half months. He further said that gas closures for export-oriented textile industry would be the last nail in the coffin of the economy of Pakistan, and resultantly would lead to default in payment of foreign obligations, while the currency rate would deteriorate further and reach a point of no return.

Sindh and Balochistan’s export-oriented textile industries that contribute more than 54 percent in Pakistan’s total exports have been served notices of gas closure despite the two provinces producing more than 80 percent of gas produced in the country. He said that the decision was taken without taking the real stakeholders in confidence.

Mazhar pointed out that due to extremely low gas pressure and frequent unavailability, it was already very difficult for the export-oriented textile industries located in Sindh and Hub Industrial Area to run their mills and fulfil their export commitments well in time.

Export-oriented textile units run 24/7 by using natural gas as a fuel for electricity generation and/or to run processing units. Thus, if they were forced to consume only 50 percent of their load, they would not be able to run their mills smoothly and fulfil their export commitments on time.

This, the chairman pointed out would result in losing their hard earned foreign buyers. It would also lead to the country losing the already scarce foreign exchange, he added. On the other hand, SSGC announced that it was not suspending regular gas supplies to the industries. “Our letters to the industrial customers have been misinterpreted by the industrial and trade organisations,” the company said in a statement.

SSGC has written letters to each industrial customer that has been using gas for power generation for suspension of gas supplies only for power generation and not for their regular usage In view of the widening demand and supply gap, especially with the drop in mercury, the company implements Gas Load Management Plan, whereby it gives top most priority to the domestic and commercial sector for supplying gas, especially those living in Balochistan, where demand for gas increases manifolds due to space and water heating needs.