Industrial consumers: government urged to ensure provision of gas, electricity

Chairman, Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association (PCFAMEA), Dr Shahzad Arshad has urged the government to chalk out a plan for providing gas and electricity to industrial consumers in peak seasons to meet the global shipment deadlines and avoid cancellation of big orders. He said that Pakistan has bright chances to regain its lost share in textile market if right policies are made by the government.
He said this is a bright chance that, if right policies are made, by government, Pakistan can get its share back, which we have already lost, due to the our negative image, based upon law and order situation. He urged the government to look into the issue of drastic situation of the value added textile industry of Pakistan, which is suffering a lot due to lack of supply of utilities, which includes electricity and especially gas.
Dr Shahzad Arshad, chairman Pakistan cotton fashion apparel manufacturers and exporters association said that Pakistan is faced with, cancellation of global orders of value-added textile items worth nearly 800 million dollars as a large number of exporters have failed to meet the shipment deadline for Christmas event both in Europe and the US in the wake of four-day gas supply suspension to the manufacturing sector. "Now, in a bid to retain their international customers, those exporters who have global orders, are compelled to make air shipment to land their consignments on time before Christmas celebrations begin.
Dr Shahzad Arshad said Pakistan being a partner of USA and western world for war against terrorism, has already lost orders and customers, worth billions of us dollars, and a real drastic scenario is going on in the country, in regard to inflation, unemployment, raise in fiscal deficit. He said due to unavailability of electricity and gas, majority of export oriented units, is either getting cancellation of orders, or they have to air ship the goods to Europe and USA at their own expense, which counts to a huge amount of loss to the exporter, who is already suffering from lots and lots of issues.
Dr Shahzad Arshad, said that the global market is also in panic due to Pakistan's negative production because of the key utility the government has announced to halt every week for four days, just allowing the production to remain for mere two days a week. "It is total loss for those manufacturers and exporters who had global orders for Christmas celebrations".
He said if the situation continued as it is now; there is a greater possibility that the country would not attain the 10.5 billion dollars annual export mark for the current fiscal year, as a clear decline of 30 percent textile exports has already shaken the economy. He said the gas shortage in cold season and electricity shortage in hot season to manufacturing sector will drive the production towards complete closure, which is expected to result in decline of foreign exchange and annual revenue collection besides growing the trade deficit significantly.
Dr Shahzad Arshad said that the low textile exports will result in a decline in income tax collection, besides other local levies and taxes and downsizing of workers from factories and the FBR is also unlikely to meet its annual tax target in the present manufacturing decline. He said due to law and order situation, we have lost our customers, and no potential customer is at the moment willing to visit Pakistan, at this difficult time, it's a humble request to government to support the value added textile industry of Pakistan by negotiating with EU and USA, to get the facility of duty free market access, for Pakistani textile products, further due to floods, we have suffered a heavy loss and again a major quantity of crop specially the cotton has been lost, the floods triggered by heavy monsoon rains in Sindh have caused an estimated loss of seven billion dollars to the agrarian economy of the country as over 2.5 million bales of cotton, two million tons of irri-6 rice, four million tons of sugarcane and many other small crops have been destroyed.
Dr Shahzad Arshad said, in this difficult most situation, when already the inflation is going towards the maximum height, and unemployment is rising day by day, the textile industry is the only industry, which can give boost to the economy of the country, so the government should look into the core issues of textile industry, which mainly includes, water, electricity shortage and rates, gas supply and gas rates, and above all the law and order situation.
He mentioned that that, textile industry of our country contributes to approximately 65 percent of our total exports and contributes to 8.5 percent of GDP, and above all we the second largest exporters of cotton yarn in the whole world, and we are third largest exporters of cotton fabrics in the whole world and we are fourth largest cotton producers in the whole world.-PR