Exported-oriented textile sector: energy shortages termed alarming

RECORDER REPORT

FAISALABAD: Textile Associations and Anjuman-e-Tajran have termed the prevailing situation alarming under the title ‘Energy Crisis for the Exported Oriented Textile Sector of Punjab’ and pointed out that gas supply to industries has been cut off for 45 days and there seems to be no sign of relief in the near future. They warned that if the PPP government did not implement its promises within two days, the industries would be run by their labour force consuming 25 percent load of gas.

Addressing a joint press conference, Rizwan Ashraf, Regional Chairman, Mian Aftab Ahmad, former Central Chairman, All Pakistan Textile Processing Mills Association, Rana Ikhlaq Ahmad, Chairman, All Pakistan Cotton Powerlooms Association, Asghar Ali, Chairman & Muhammad Asif Vice Chairman Pakistan Textile Exporters Association, Muhammad Amjad Khwaja, Ex-Chairman, PHMA North Zone, Shakeel Ahmad Ansari, Chairman, All Pakistan Sizing Industries Association, Imran Mehmood, Chairman APBUMA and leaders of Anjuman-e-Tajran said that the production process had been suspended and millions of workers had been rendered jobless, but the government was not taking any steps to save the Industry and Labour class. Long hours of electricity shutdown were adding fuel to the fire and they had stopped the production process completely, they added.

They said that Pakistan’s volume of textile export orders had dropped by 60% compared to last year in the world’s renowned Heimtextil exhibition in Germany last week. Pakistani Textile exporters attracted a lukewarm response, foreign buyers were reluctant to place export orders because of delays on time materialization of previous commitments, they mentioned.

The leaders of the Textile Associations pointed out that the severe energy crisis and constant load shedding of gas and electricity hampered the production process creating a drastic fall in industrial output and exporters were not able to honour their export commitments. Taking advantage of this situation, China, India and Bangladeshi exporters had captured our traditional markets through deceptive propaganda that Pakistani exporters could not fulfil their export commitments on time, even by next year due to the energy shortage. These factors were the main cause of hesitation for placing export orders, they added.

They mentioned that Pakistani exporters were getting about 25 million dollars export orders every year in Heimtextil but this year they got only 3 million dollars in orders due to severe energy shortage and non fulfilment of previous orders on time. World’s renowned departmental stores like Wal-Mart and JC Penney also stock their inventories through this exhibition.

In a press statement, Mian Zahid Aslam, President Faisalabad Chamber of Commerce and Industry (FCCI) said that the Ministry of Industry and Ministry of Textile Industry should intervene for the uninterrupted supply of electricity and gas to the industries s a result of which exports particularly textile exports of the country have suffered immensely.

He referred to his recent visit to ‘Heim Tex’ Germany Trade Fair – the largest one in the world and stated that 60% fewer orders were received by Pakistani textile exporters this year while Indian exporters received over and above their targets.  He maintained that this depicts the loss of confidence and trust of foreign buyers in Pakistani exporters for non-compliance of orders on time, from the severe energy crisis.

Criticizing the Ministry of Industry and Ministry of Textile, he said that both the Ministries were on the same page about the deteriorating situation of the industrial sector in the country from the lack of uninterrupted supply of electricity and gas to the industries. He continued that it was high time that they take advantage of the space available for Pakistani textile exports in the international markets due to the slow growth of China and Indian economies. Pakistan’s textiles specialize in home textile.