Pakistan: Textile sector shocked over gas cut

Punjab-based textile entrepreneurs expressed disappointment over the petroleum minister s going back on his assurance given by only a month back for five days a week gas supplies as gas supplies have been curtailed to four days jeopardising their export commitments.

Punjab-specific gas cut to the industry has taken the stakeholders by surprise as Dr Asim, the petroleum minister, has admitted that 300mmcfd gas has been added to the SNGPL system this year, said All Pakistan Textile Mills Association chairman Gohar Ejaz after a meeting of the APTMA members from all over Punjab here on Thursday.

President Zardari has agreed to meet the APTMA delegation at 4pm on Friday where this issue would be taken up, he said, adding that the industries in Punjab needed only 600 mmcfd of gas daily. He said requirement of APTMA members was 350 mmcfd.

Last year, the SNGPL authorities had suspended 28 percent of APTMA gas requirement which was equivalent to 100mmcfd, the APTMA chairman said. He said that after addition of 300mmcfd to the system, the industry was expecting relief this year.

Ejaz said textile was the top foreign exchange earner of the country. He said 28 percent reduction in gas supplies translated into export loss of $2 billion. He said if only 100mmcfd of the newly inducted gas supplies were additionally allocated to the textile sector, the industry could run seven days a week.

Ejaz said APTMA would request the president to intervene in the matter during a meeting with him on Friday.

Earlier, there was a heated discussion among the APTMA members for the line of action to be adopted over abrupt suspension of gas supplies for additional day per week. Some members advocated closure of the industry in protest against the SNGPL decisions. Others suggested taking out procession along with 1.5 million daily wagers who were losing income every time gas supplies were suspended.

However, sanity prevailed and convinced the hawks among them to engage with the government and convince the economic planners on the importance of sustained gas supplies to the textile sector which was the backbone of the economy.

The export targets for this fiscal year depend on sustained power and energy availability, said APTMA Punjab chairman SM Ahsan. He said after a sharp decline global cotton rates, the exports could only be increased by increasing the quantity of textile products to compensate the decline in per unit value. Increased productivity, he said, would only be possible if gas supplies were fully restored.