Energy crisis, poor law and order condition: industrialists putting up their manufacturing units for sale

Disgusted with prolonged load shedding of gas and electricity, costly alternate energy sources, mounting non-performing loans, worsening law and order situation, and bad governance, the Pakistani industrialists are putting up their once flourishing and profitable industrial units for sale.
Talking to Business Recorder an industrialist, who has put up a modern textile spinning mill, said, "we are getting out of the manufacturing business as there is no energy to run the mills and mark up on our banks' loans is mounting and becoming unbearable."
When further questioned he said, "Business Recorders knows every thing about the plight of the manufacturing industrial sector, therefore, I have nothing to add."
According to a State Bank of Pakistan (SBP) report the non-performing loans of the banking industry increased to an alarming level of Rs629 billion in November 2011, registering an increase of 119 billion in a year.
The loan defaults are also on the rise despite cautious approach of the financial institutions while lending to the private sector. Chairman Pakistan Association of Automotive Parts and Accessories Manufactures (PAAPAM) Nabeel Hashmi said the power outage for over eight to 12 hours per day had ruined hundreds of vending units across the country, specially in Punjab and KP provinces under the SNGPL jurisdiction.
He said the alternate energy sources were more than three times expensive which had made Pakistani auto parts and accessories uncompetitive in the international market, ironically at a time when Pakistan is giving MFN status to India.
"Industrial production is suffering and exports are on the decline, jobs are being lost," he added. APTMA sources said that natural gas remained suspended to industries located in Punjab for more than six months in 2011 due to which industrialists were shifting their industrial units to Bangladesh, Malaysia, China, Saudi Arabia, and other countries. "Negative industrial growth has resulted in reduced output, missed export and revenue collection targets and monumental unemployment," they added.
Former President Karachi Chamber of Commerce and Industry (KCCI) Qaiser Ahmad Sheikh said that Pakistan was losing more than $10 billion every year due to power shortages, as gas and electricity outages have ruined the textile, chemicals, fertilisers, and other engineering manufacturing units. The crippling interest rate and inflation are also in double digits that have hit the industrial production, he added. Qaiser said due to bad governance, corruption, uncertain and costly power supply the Pakistani investors have dropped plans to make further investments in setting up new manufacturing units or expand the present one which is a bad omen for the national economic and social stability.
Some industrialists accused the Federal government of discriminatory treatment to industrial units located in Punjab, which contributes about 65 percent to the country's total exports. According to a report, sports and surgical goods sectors are facing 50 percent production loss, which is causing Rs68.77 million loss daily.