LAHORE MIRROR– Pakistan Textile Exporters Association (PTEA) has urged the government to immediately restore RLNG supplies to CPPs in a bid to avert any delay in meeting the US$ 20 billion textile export target for the ongoing fiscal year.
Further delay may drastically hit the industrial production which subsequently ruin the economy.
Expressing grave concern over RLNG supply cut to CPPs, Chairman Pakistan Textile Exporters Association Sohail Pasha said that gas is the basic fuel for manufacturing and processing of textile goods. Absence of gas as well as scarcity of electricity has become the major obstacles faced by the exporters. In addition to gas closure, the textile industry is also facing power cuts.
He pointed out that the majority of textile producers have already installed the most efficient combined cycle technology to generate captive power, as well as produce steam and hot water for production.
Moreover, power distribution companies are not in a position to supply additional power to the exporting units that have expanded their production capacities in the last couple of years. Most importantly, exporters who have recently upgraded their textile technology required an uninterrupted, smooth power supply to avoid damage to their equipment and production losses owing to frequent fluctuations on the grid.
He said that energy shortage has created hurdles and squeezed the industrial activities. Country desperately needs to boost exports to overcome its economic challenges and narrow its ballooning trade deficit, which has surged to US$ 43.3 billion in eleven months of current fiscal. He stressed for immediate restoration of RLNG supply to textile export sector’s CPPs for smooth running of industrial wheels.
The PTEA Chairman was of the view that textile export industry has entered into a sustainable economic growth phase witnessing a sharp surge of 25.9% year-on-year to $ 15.9 billion in July-April of FY-22.
However, emergence of an economic crisis will be an instant setback, coupled with rising manufacturing expenses, energy issues, squeezed financial assistance, rising prices of raw material and lack of investment are among various factors which may hit the growing trend. There is a need to formulate pragmatic policies to reduce the cost of business by fixing rates of inputs in line with competing countries in the global market to create a level playing field, he said.
All emerging economies have done the reforms by removing impediments, which have helped them increasing their exports and we need to follow their footsteps and take our industry into the right direction to achieve our national goal. He stressed for switching the focus towards value-addition in textile industry as sustainable growth hinges upon value addition.
PTEA leadership urged the government to restore the priority of the export industry and to recognize the immense losses and damage to Pakistan’s economic future as a loss in production will lead to a further loss of exports. They demanded immediate restoration of RLNG supplies to the CPPs of textile export industry.— PRESS RELEASE
