MoTI for gas supply to textile industry on priority basis

TAHIR AMIN

ISLAMABAD: The Ministry of Textile Industry has moved a summary to the Economic Coordination Committee (ECC) of the Cabinet, seeking gas provision to the textile industry on priority basis under the gas load management programme, it is learnt reliably.

Sources revealed textile sector will continue to face 500 mmcfd gas shortfall and face gas load management till September 2012. In the next fiscal year this shortfall will increase from 500 mmcfd to 700 mmcfd for the textile sector.

However, to avoid such embarrassing situation, the Textile Ministry has moved a summary seeking gas for the textile industry on priority basis equal to fertilizer sector to the ECC.

Textile industry pays interest on loans for 365 days, but due to power and gas crisis, industry operates only 180 days, industry sources revealed.

According to sources textile export of the country were recorded at $12.356 billion in 2011-12 against $13.788 billion, during the same period of the corresponding year, registering a decline of $1.432 billion mainly due to energy crisis.

In Textiles Policy 2009-14, a target of $ 25 billion textile exports was envisaged by 2014. To achieve this target the ministry had proposed various short to long term initiatives, while the Cabinet approved these initiatives along with proposed funding plan including provision of gas and electricity on priority basis. However, the government failed to provide these facilities which negatively affected textile export of the country.

Exporters talking to BR expressed concern over energy issue, saying that energy including gas and electricity is not only short but their prices have also increased thus rendering them uncompetitive in international market.