NA body informed: Textile sector to continue facing gas shortfall till Sept

TAHIR AMIN

ISLAMABAD: National Assembly Standing Committee on Textile Industry was informed here on Wednesday that textile sector will continue facing 500 MMCFD gas shortfall and face gas load management till September 2012. In the next fiscal year this shortfall will increase from 500 MMCFD to 700 MMCFD for the textile sector.

The committee met with Haji Akram Ansari MNA in the chair here on Wednesday and expressed serious concern over the gas shortage for the textile sector. It further directed the authorities to make sure un-interrupted supply of gas to labour intensive export oriented industry.

Secretary Ministry of Textile Industry informed the committee that Ministry has sought Rs 30 billion for implementation of Textile Policy initiatives for next fiscal year 2012-13.

It was informed that during the ongoing fiscal year 2011-12, an allocation of Rs 7.5 billion was made for implementation of Textile Policy initiatives and so far only Rs 5 billion have been released. Remaining Rs.2.5 billion are yet to be released by Finance Division. He informed that exports enhancement could only be achieved when they are strongly backed by trade facilitation, marketing and other measures by the commerce ministry.

Secretary also informed the committee that Ministry of Commerce may strengthen National Tariff Commission and requested that Strategic Trade Policy Framework 2012-15 may also contain Tariff Policy as well. Tariff rationalization may promote manufacturing rather trading. Textile ministry supports this principle and request to also apply it while carrying out trade negotiations. He informed that there is a need to initiate Export Insurance Scheme to cover risk of exporters; it has also recommended creation of Brand Development Fund.

Chairman of the Committee Haji Akram Ansari was of the view that textile industry has not defaulted in bill payments, then why it is forced to observe un-announced power loadshedding. An agreement was reached between industry and power authorities that there would be two hours loadshedding in morning and two hours in the evening than why the industry is being pushed against the wall by forcing it to observe un-announced power loadshedding. He also ordered transfer of Chief Engineer SNGPL Faisalabad upon complaints by textile associations due to his misbehavior with representatives of textile industry. He asked the SNGLP and SSGC to prepare a working paper and submit to committee that why Ogra has disallowed LPG air mix so that committee could take up this issue with the Ogra. Rashid Godil MNA, informed that equipment worth Rs 50, 000 is being installed in houses for conversion of natural gas in to CNG and during gas load shedding tanks of the vehicles are being filled with it, only poor are the victims of gas loadshedding in the country. He expressed his dissatisfaction over the high gas losses of 11 percent and said that if Khyber Pukhtunkhwa province is exempted from gas loadshedding on the basis of constitutional provisions than Sindh is also surplus in gas production why the consumers of Sindh province are being forced to observe one day gas load shedding.

He also questioned that why the gas produced from Qadirpur Gas Filed is being directly supplied to SNGPL and not to SSGCL, why two different stances are being taken in two different provinces in the name of constitutional provisions. He asked the gas authorities to make sure gas supply to textile sector, which is earning foreign exchange to the tune of $ 25 billion and providing millions of job opportunities.  Tasneem Siddiqui MNA demanded of the authorities to ban filling of CNG in big vehicles like busses, trucks and coaches with multiple cylinders so as to make sure availability of gas for textile sector.

Usman Ibrahim MNA was of the view that if the authorities are able to stop gas theft there would be no need to curtail gas supply to textile industry. Manwar Lal MNA asked the authorities to convert transport on LPG and make sure provision of natural gas to export-oriented industries like textile.

Mehmood Hayat Khan-Tochi Khan MNA said that many new companies have been formed in the private sector that are providing gas storage tanks to industries on payment so as to use this stored gas during the gas loadshedding period. He proposed the CNG stations should be allocated a quota of gas and any station consumes more gas be charged higher price. SSGCL official informed that they have arranged setting up of 100 LPG auto gas stations in Sindh with Pakistan State Oil Company.

Pepco officials were not able to convince the members of the committee on power shortfall and informed that at present generation shortfall is due to reduction in hydel generation by 1500MW. They hoped that by June, there would be increased water availability and hydel generation to pick up again.