LAHORE: The textile industry has apprehended closure of units as a result of plan for reduction in gas quota for the textile sector in the coming months.
“The gas closure plan seems to be an attempt to disturb the industrial chain in Punjab,” said Pakistan Textile Exporters Association (PTEA) Chairman Sohail Pasha at a news conference on Tuesday.
Flanked by office-bearers of All-Pakistan Textile Mills Association, All-Pakistan Textile Processing Mills Association and Khurrianwala Industrial Estate Association, Pasha urged the government to rescue the textile industry and save from the current turmoil as energy crisis and liquidity crunch were hampering growth. He apprehended loss in case energy and financial crises were not overcome.
He said country’s exports fell by 10.16 per cent while textile exports dropped by 4pc during the first quarter of current fiscal year compared to same period of the outgoing fiscal year. In July, textile exports were down by 2.37pc, in August 8.38pc and in September 1.16pc.
Naveed Gulzar of All-Pakistan Textile Mills Association said that textile sector had repeatedly been showing concerns over the situation, but policy makers were not paying attention to the problems of the sector.
Ahmad Kamal, former Chairman of PTEA, was of the view that situation was becoming unbearable for the industry.
“The drop in exports will make a negative impact on economy.”
Rana Arif Tauseef, former chairman of PTEA, said that the textile sector had already forewarned about the crisis through several SOS calls, but the problems remained unresolved.
Around 30 to 40pc working capital of textile exporters was already stuck-up in refund regime creating severe liquidity crunch.
Energy shortage has already hit the Punjab industry, and due to this, jobs of about one million workers were insecure. In this situation, the future of GSP+ seemed to be dark, he said.