Millers say textile industry in Pakistan’s south grapples with gas disruptions

KARACHI: The textile industry in Sindh and Balochistan is facing a major crisis as severe shortages and disruptions in gas supply have forced numerous industries to shut down or operate at only 50 percent of their production capacity, an industry official said on Tuesday.

Zahid Mazhar, Chairman of the All Pakistan Textile Mills Association, Southern Zone said the industry continues to suffer from insufficient supply and low gas pressure despite a 30 percent increase in gas tariffs implemented in February 2023,

Mazhar said the shortage of gas supply has caused significant damage to the export-oriented textile sector in these regions, leading to a massive decline in large-scale manufacturing and textile exports.

Data shows that textile exports between July 2022 and April 2023 have decreased by more than 14 percent compared to the same period the previous year.

Mazhar emphasised that Sindh and Balochistan provinces contribute approximately 85 percent of the total natural gas production in the country.

However, they are being denied their rights guaranteed under Article 158 of the Constitution of Pakistan. Additionally, the textile industry is not only affected by the weekly closure of gas for two days but also faces low gas pressure throughout the week, resulting in substantial production losses, de-industrialization, and unemployment.

He further expressed concern over the suspension of gas supply to industries based in Sindh, which contribute 52 percent to the country's total exports.This disruption is causing colossal losses in terms of foreign exchange and revenue for Pakistan.

In light of these issues, Mazhar urged the governments of Sindh and Balochistan to take immediate action and address the shortage and low gas pressure problems. He called on them to instruct the Sui Southern Gas Company Limited (SSGCL) to ensure continuous and uninterrupted gas supply to the industries in these provinces, especially the export-oriented sector.

APTMA last month warned that textile exports face a potential decline of $3 billion this year as the sector is facing operational challenges due to foreign exchange issues and a lack of energy availability.

It attributed the downward trend to the import moratorium on raw materials and essential spare parts, inadequate energy supply at competitive prices, and the failure of the sales tax refund system. Consequently, over 50 percent of the industry has been forced to shut down.