Pakistan: Perturbed with energy crisis, textile exporters plan to shift industries to other countries
Pakistan textile exporters have threatened to move their industries to other countries as they are reportedly perturbed from gas load-shedding and the ongoing energy crisis in the country.
Citing a statement of Pakistan Apparel Forum (PAF) Chairman Jawed Bilwani, The Express Tribune reported that textile exporters have formed a committee for due diligence to shift industries in the wake of gas crises and unviable business environment.
During a meeting of prominent textile exporters of Pakistan, it was mentioned that since last 15 days (from June 11 2021) there was zero gas pressure, which has crippled industries and halted export production. "During fiscal year 2020-21, some 99 days out of 320 working days, gas pressure was zero or low," he added.
Furthermore, textile exporters having Regasified Liquefied Natural Gas (RLNG) connections and paying the amounts with great difficulty, to meet export orders at a rate of Rs 1,533 per mmbtu, are not provided gas.
The exporters questioned how industries would work without the basic raw material. They voiced concerns that there is no chance that the textile export industries will get the required gas smoothly with adequate pressure in future.
Sector research analyst believes that textile industry is one of the leading export industries of Pakistan. Exports clocked-in at 13.8 billion dollars in the first 11 months of the outgoing fiscal year 2020-21 alone.
"This is more than twice the International Monetary Fund (IMF) facility of 6 billion dollars," the analyst said, adding that depriving the industry of gas will hurt exports of the country.
Similarly, non-export industries are also not getting gas as per their requirement. These industries also play a vital role in the manufacturing of value-added products for export industries, and also produce products for meeting local demand, said North Karachi Association of Trade and Industry (NKATI) President Faisal Moiz Khan.
"Therefore, non-export industries are as important as export industries and they should be ignored," he maintained.
The PFA Chairman also added that amid the continuous gas crisis in the country, especially in Karachi, and given contradictory moves by the government towards its business policies by depriving the exporters of a level-playing field and viable business environment, the textile exporters have constituted a committee for due diligence to shift textile export industries elsewhere, on the exporters demand, to correspond and negotiate with those countries which have much better business and export-friendly policies and are offering most attractive incentives to their foreign investors as well as their local industries.
Earlier this month, Geo News reported the worsening state of Pakistan's energy crisis, as the country was facing an electricity shortfall of somewhere between 7,000 and 8,000 megawatts.
Unannounced load-shedding has reached its peak in Punjab, including Lahore, due to the electricity shortfall. Unannounced power suspension of up to three to five hours at many places during the last 72 hours had heightened the misery of the public. Due to the power crisis, besides Lahore, long hours of load-shedding are also taking place in other cities, including Islamabad, Peshawar and Karachi.
(ANI)
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