PHMA rejects 15pc increase in industrial gas tariff

RECORDER REPORT

LAHORE: Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has rejected 15 percent increase in industrial gas tariff, saying that it is unjustified hence unacceptable.

Chairman PHMA North Zone Usman Jawaad said that value added knitwear garment industry in particular and textile industry in general are already passing through critical situation where survival has become the main issue due to competitive world market.

He said textile and value added knitted garments make sizable contribution in the export earnings but still registered decline in the fiscal year 2011-12 as compared with competitors. This is due to lack of level playing field for Pakistani exporters.

The present increase of 15 percent in gas tariff would ultimately increase the production cost in textile industry and this will make big difference in the local as well as export prices of textiles. He therefore has demanded that the decision of increase in price be withdraw immediately for the interest of country’s export business because the industry has already been working in most difficult situation ever faced by it.

Chairman PHMA has heighted the alarming situation of downsizing of production in textile sector and resultant unemployment being faced by the labour which has further aggravated the poverty level of the country. In such a situation, he said, the government should take supportive measures rather than further squeezing the industry through gas price hike.