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Saturday 20, December 2014

 
 
 

 

Gas, electricity shortage cause Rs200bn annual loss to Textile industry

Posted by: Monitoring Desk, Uploaded: 29th December 2012





ISLAMABAD: Textile industry of the country is registering a huge loss of Rs 200 billion each year for the last four years, due to power and gas shortage, a letter written by the Ministry of Textile Industry to Ministry of Water and Power and Petroleum and Natural Resources said.

Textile Ministry in the letter called for giving priority to this export-oriented sector in gas and power supply as it not only contributes to the country’s economy but also provides jobs to millions of people.

Official sources revealed that though export of raw cotton, cotton yarn and export of low value-added textiles had increased, yet the value-added apparel and home textile exports declined considerably during the last four years.

Bumper cotton production was recorded in the country during this period of time, however due to gas and power shortage, the industry was unable to consume the crop for value-added production.

Due to tariff concession, easy market access, improved law and order situation and good energy supply in Bangladesh, Turkey and Sri Lanka, some textile units have relocated there. Availability of utilities, low utility price and subsidies that have been provided by competitor governments are disadvantaging textile exports of Pakistan. Further, due to poor law and order situation, production losses have increased, but the main reason behind these losses was gas and power shortage in the country, sources maintained.

To address the issues of textiles sector and make it self-sustainable, the government approved first ever Textile Policy (2009-14) in August 2009 that envisaged boosting textile exports to $25 billion in five years. The Cabinet while approving the Textile Policy also approved the proposal that the textile industry will be exempted from load-shedding and would enjoy priority.

However, government failed to ensure gas and power to the industry and it failed to meet its production and export targets as was envisaged in the policy, sources maintained.

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Story first published: 29th December 2012




 
 
 

 
 


 

 






 
 

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