LAHORE - Textile industry exports are on the decline from the last five months of 2014 (April-August) in basic textile due to energy constraints, particularly in Punjab, latest data said.
The newly-elected central chairman of All Pakistan Textile Menufecturing Assosiation (APTMA) S M Tanveer, who will assume the charge of his office on 30th of Sept, quoting the latest exports data observed that the exports of cotton cloth and cotton yarn, comparing with the corresponding periods, have declined respectively to 52% and 12% in August 2014, 43% and 33% in July 2014, 35% and 27% in June 2014, 36% and 22% in May 2014 and 36% and 22% in April 2014 respectively.
It is to be noted that the Election Commission APTMA announced unofficial election of S M Tanveer for the office of central chairman of All Pakistan Textile Menufecturing Assosiation for 2014-15.
S M Tanveer is currently holding the office of Chairman APTMA Punjab. No nomination paper was filed against him for the office of central chairman APTMA before the Election Commission within due date. The last date for filing of nomination papers for the office of Chairman of All Pakistan Textile Menufecturing Assosiation was 20.9.2014.
As per the APTMA Articles of Association, it is the turn of Punjab zone to hold the office of central chairman during 2014-15. Further, it is consecutive sixth year that the candidates of Businessmen Group are facing no opposition from rivals for the office of central Chairman APTMA.
Already, the Businessmen Group has secured 6 seats in Punjab zone, 5 seats in Sindh zone and one seat in KP zone unopposed for the Central Managing Committee elections 2014-15.
S M Tanveer is chief executive of a leading textile concern Din Group. Besides, he is also heading the Punjab Industrial Estate Development & Management Company (PIEDMC) of the Government of Punjab.
Showing his grave concern, the new central chairman said that this unprecedented decline in exports of basic textile over the last five months indicates that a sizeable textile capacity has either been closed or non-operative.
According to him, the prime factor behind the closing down and non-operational capacities is short supplies of energy, particularly in Punjab where 70% of total textile industry of Pakistan is located.
S M Tanveer said the operations of basic textile industry are energy intensive, fed from independent feeders with nominal line losses and fully compliant in bills payment. However, the DISCOs have been unwilling to meet their energy needs. Similarly, the gas availability is also under pressure for Punjab industry as the SNGPL is providing gas only for eight hours a day at present against 24/7 supplies in other provinces.
He apprehended that a constant five months decline in exports in quantity terms is 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 one billion dollar exports to the country in five months provided that required energy is supplied to the Punjab-based textile mills, he said, adding: 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 policy-makers.