Mr Adil Bashir, APTMA Punjab Chairman said that due to the prevailing uncertainty caused by inordinate delay in the notification issuance of regionally competitive energy price in essence of gas at $6.5 per MMBTU and electricity at 7.5 cent per kWh, by the government has seriously impacted the growth in exports, production and investment.
According to him at the Economic Coordination Committee meeting, the government announced to provide energy supply to the Punjab-based exporting industry on the 27th of September, both for captive and processing use, at regionally competitive price to make it viable and to revive the closed capacity here. He further informed that one long term objective of this initiative was to attract new investment and to double the textile and clothing exports.
The export data for the month of October 2018 indicates that both the industry and exports have become the victim of prevailing uncertainty, as the export of cotton yarn and cotton cloth have dropped by over 39% and 24.11% respectively against the corresponding period. Also, the overall exports of textile and clothing have declined by 0.21% during the same period.
He said it is quite confusing as to why the government and the concerned machinery was delaying the notification for tariff equalization for the exporting industry in Punjab despite a firm assurance and commitment by the Honorable Prime Minister Mr Imran Khan. The gas is being supplied at Rs488 per MMBTU in Sindh and Khyber Pakhtunkhwa against at Rs1663 per MMBTU for the mills in Punjab.
He said the existing industry in Punjab cannot survive under the given circumstances, what to talk about its revival in near future. Already, he added, 30 percent of the production capacity across spinning, weaving and processing sectors with an export potential worth $4 billion has been closed down due to the high cost of business in the province of Punjab.
The existing industry in Punjab is unable to survive under the given situation. 30% of the production capacity across spinning, weaving and processing sectors with an export potential worth $4 billion has been closed down due to the high cost of business in the province of Punjab.
Therefore, he said, the APTMA management has convened an emergent meeting to take a decision about closing down the industry operations across the province of Punjab.
