PESHAWAR: Khyber Pakhtunkhwa Textile Mills Association (KP-TMA) has expressed concern over manifold increase in energy prices and attributing it to last nail in the coffin of the ailing textile industry of Pakistan in general and KP Textile Industry in particular.
In a statement issued to the media after presiding over an emergent meeting of the textile millers, Afan Aziz, chairman, KP-TMA said that the decision would badly hit the export oriented textile industry. The meeting was especially convened to discuss the drastic increase in energy prices and withdrawal of the regional competitive Energy Tariff of Rs. 19.99/kWh and a gas tariff of Rs. 852/- MMBTU for gas will result in complete closure of textile industry of Khyber Pakhtunkhwa.
He further said that 60% of the industry is already closed and the remaining 40% will be closed due to this act of government. The textile industry will lose all export orders due to higher regional competitions and due to increase in energy prices for which industry is not ready at all, he added. He said that the export oriented textile industry is the largest job provider and earning much needed billions of US $ annually. Due to high energy prices, the textile industry will not only lose their market share in the international market but it will lead to closure of many units. Closure of industry would lead to massive unemployment resulting in a law & order situation on one hand and loss of export market share and much needed foreign exchange on the other hand.
Chairman KPTMA further added that energy is a key source of economic growth. Higher costs of electricity and gas directly hurt export oriented textile industry as they are the key inputs in the production. In addition to pushing up inflation, the big rise in energy prices will reduce real GDP and productivity. Higher energy prices have contributed to painfully high inflation, forced factories to curtail output or even shut or slow down economic growth to the point that countries heading towards severe recession.
He called for restoration of already committed energy tariff and release of stuck up sales tax, income tax and DDT refunds to use as working capital.
Copyright Business Recorder, 2023
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