Pakistan Textile Industry
Pakistan's textile sector loses $1bn export orders amid energy crisis
Islamabad: All Pakistan Textile Mills Association (APTMA) Chairman Abdul Rahim Nasir has said that about 300 textile mills have been closed in the country amid a heavy energy crisis and subsequent suspension of gas supply.
Nasir has also urged Prime Minister Shehbaz Sharif-led Pakistani government to restore gas supply to the textile industry on an urgent basis.
During a press conference on Wednesday, he stated that a 26 percent upsurge in the export of textiles during the fiscal year 2021-22 was made possible only due to the supply of energy at a regionally competitive tariff, stressing that a loss of almost USD 1 billion in exports has already been incurred.
Pakistani daily The Dawn reported, quoting Vice-Chairman Kamran Arshad, that the exponential growth in the textile sector has promoted investment of over USD 5 billion and the establishment of 100 new textile units, which, after becoming operational, would result in fetching additional exports of USD 6 billion per annum.
The APTMA Chairman said that gas supply to the industry was suspended for a week, almost halting production in the whole value-added industry and causing a massive loss to the economy which led to the large-scale closure of mills that ultimately resulted in massive layoffs and unemployment, spreading economic chaos.
According to reports by The Dawn, an incessant supply of gas for the industry to maintain momentum in exports is a necessary call that the Pakistan government is not paying heed as APTMA North Zone Chief Hamid Zaman stressed that the textile sector has repeatedly delivered on its commitment to enhancing exports and proven that they are a viable and long-term solution provider for the economic stability of the country.
He has also warned that more than 50 percent of output would be lost this month, with a very high risk of permanent order loss and buyer diversion from Pakistan to its competitors and that the textile industry is currently producing goods for the upcoming Christmas, and any delay in the delivery schedule risks losing export markets for an indefinite period with little chance of recovery.
“If this momentum is lost due to energy supply and cost constraints, Pakistan will be forced to seek an additional USD 6 billion in loans from abroad, which under the circumstances may not even be possible,” Zaman said.
Arshad said that textiles have a 61 percent share in the country’s exports and 40 percent of manufacturing sector employment as the fragile economy of Pakistan cannot sustain the consequences of the closure of mills in the wake of non-supply of gas, reports ANI.
Several Pakistani cities, including Quetta, Peshawar, Gujranwala, Multan, Faisalabad and Mirpurkhas, are reportedly suffering from a gas shortage.
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