Cotton cloth, yarn exports dip 52%, 12% in Aug 2014 on energy limit

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LAHORE: Textile industry basic textile exports are on a nose-dive plunge from April to August 2014 due to energy constraints particularly in Punjab, according to facts released by All Pakistan Textile Mills Association (APTMA)on Tuesday. The textile industry exports data reflects the exports of cotton cloth and cotton yarn, comparing with the corresponding periods have declined respectively to 52 percent and 12 percent in August 2014, 43 percent and 33 percent in July 2014, 35 percent and 27 percent in June 2014, 36 percent and 22 percent in May 2014 and 36 percent and 22 percent in April 2014 respectively. APTMA Punjab Chairman SM Tanveer said this unprecedented decline in exports of basic textile over the last five months indicated a sizeable textile capacity has either been closed or non-operative. Prime factor behind closing down and non-operational capacities is short supplies of energy, particularly in Punjab where 70 percent of total textile industry of Pakistan is located. Tanveer said the operations of basic textile industry were energy intensive, fed from independent feeders with nominal line losses and fully compliant in bills payment. However he said power distribution companies (Discos) have been unwilling to meet their energy needs. Similarly, the gas availability is also under pressure for Punjab-based textile industry As Sui Northern Gas Pipelines Limited is providing gas only for eight hours a day at present against 24/7 supplies in other provinces. He apprehended a constant five months decline in exports in quantity terms was due to the widening gap of energy equilibrium in Punjab against other provinces. The prevailing unit price of cotton cloth and cotton yarn could have fetched an additional $1 billion exports to the country in five months provided required energy was supplied to the Punjab-based textile mills, he said. The country would be at a loss of $2.5 billion exports if energy constraints continue for the remaining part of the year. Does Pakistan not need foreign exchange by letting the industry to operate on full potential, keep the employment intact and the economy on the growth trajectory, he posed a question to the policymakers. He urged the government to make sure supply of uninterrupted energy, both gas and electricity, supply at an intra provincial competitive price to let the Punjab-based textile industry grow in the larger industrial and economic interests of the country.

 

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