The All Pakistan Textile Mills Association (APTMA) has requested that Prime Minister Shehbaz Sharif restore gas supply to the textile industry on an urgent basis, as the gas suspension will cause a loss of at least $1 billion in just 15 days.
In a letter written to the prime minister, APTMA Patron-In-Chief Dr. Gohar Ejaz said that the gas supply to the industry has been suspended from 1 to 8 July, and businesses will also remain closed on the Eid holidays from 9 to 14 July, resulting in a loss of at least $1 billion.
Dr. Ejaz reminded the Prime Minister that the textile industry has seen significant growth in recent years, with exports reaching $20 billion from $12.5 billion within two years.
He said that the growth in exports was due to the implementation of the Regionally Competitive Energy Tariff (RCET), investment of $5 billion in expansion, and the establishment of 100 new textile units.
This increased the industry’s export capacity by $500 million per month, he added.
He complained that the industry, which was contributing heavily to exports and could deliver $2 billion in exports every month, was being denied the supply of gas.
He cautioned that if the situation continued, it would lower the exports causing the economy to further worsen.
Important to note that the textile industry has made major contributions to Pakistan’s economy. According to the data by APTMA, Pakistan’s textile exports surged 28 percent to $17.67 billion in July-May of the last fiscal year, the highest ever for the period under review.
The APTMA data showed the exports of textile goods posted 59 percent growth to $1.69 billion in May 2022 against $1.06 billion in May 2021.
Interestingly, Pakistan’s exporting sector has the capacity to deliver over $2 billion in exports per month, however, the gas suspension is resulting in losses. Many textile industries in Punjab have already shut down and it is feared that more will follow.
