The textile industry is panicked over rumours of gas disruption for 90 days during winter season. Sources said the federal government is considering the option of suspending gas supply to the textile industry to keep CNG and fertiliser industry running during the winter.
It may be noted that the contract signed for industrial connection stipulates supply suspension for 90 days during winter. Therefore, government is considering taking the option of no gas to the industry in order to avoid political repercussions of denial of gas supply to consumers of CNG and urea. The CNG pump operators have also secured a stay order from Islamabad High Court against suspension of gas supply. Resultantly, CNG pump owners have resumed operations from Saturday. It is also worth noting that the Prime Minister has made an announcement of uninterrupted gas supply to the urea manufacturers to ensure availability of urea to the farmers.
These two important developments are enough to suggest the government's mindset on the subject, particularly in Punjab, where the consumers on the SNGPL network are likely to face heavy supply cuts with the start of winter. The textile industry circles, on the other hand, are of the view that they have already faced a gas disruption for 120 days during the current calendar year. According to these circles, the industry is the mainstay of Pakistan economy contributing heavily to the national foreign exchange and a suspension for 90 days would lead to massive closures.
They said the textile industry has contributed $14 billion exports to the country's total exports of $25 billion. Besides, it has also employed 15 million direct and indirect jobs in the country and closure of mills due non-availability of gas means massive unemployment.
According to them, the cost of doing business has already multiplied with successive closures and everyday increasing tariff of available gas. The industry circles have urged the government to drop any such idea of 90 days closure and instead support it like the previous year in order to ensure $16 billion exports ahead and lifting of cotton crop from growers.