Uninterrupted gas supply and low markup: Aptma suggests way forward for survival of textile industry

The All Pakistan Textile Mills Association (Aptma) leadership said Tuesday uninterrupted gas supply and further reduction in bank mark-up could only be the way forward for textile industry to survive and contribute to the national exports.
The Aptma group leader Gohar Ejaz and Chairman Aptma Mohsin Aziz said five days a week gas supply during winter by the SNGPL and reduction in discount rate by 200bps by the State Bank of Pakistan is the answer of prevailing dismal state of affairs in textile industry.
Addressing a press conference at the Aptma Punjab office, the Aptma leadership pointed out that a tough time is waiting ahead for textile industry in case the government fails to deliver in accordance with textile industry aspirations. Mohsin said the textile industry had faced a gas supply closure for 75 days last year. At present, he added, the SNGPL has denied gas supply for 120 days to industry so far and winter schedule has yet to be implemented.
It may be noted that the Economic Co-ordination Committee (ECC) has approved three days a week gas suspension to textile industry during winter. Dr Asim Hussain, Federal Petroleum Minister, however, had promised two days a week gas disruption for industry. He had made this announcement amidst standing ovation by Aptma two weeks back for introducing Gas Theft Act.
Gohar said the gas disruption has resulted into and idle capacity worth $1.5 billion till date during current calendar year. The idle capacity reaches to the worth of $4 billion even if 75 days gas disruption of last year is added as well, he added. According to him, the country was going to have surplus cotton crop to the tune of 14 million bales this year against 11.7 million bales last year. He said viability of the industry was under threat amidst energy crisis coupled with high interest rate. Gohar said the bank mark-up in India was merely 8.5pc against 12pc in Pakistan. Resultantly, he said, the size of NPLs has reached Rs 600 million in the country.
The Aptma leadership said adverse circumstances would inhibit the growth potential of the industry. They added the dream of achieving $16 billion exports against $14 billion last fiscal would be unreachable and time is high to revisit the priority list by the government on gas supply. When asked about possibility of holding next annual dinner of association at the presidency like last year, Gohar said smilingly: "We will think of it after 90 days."