by Azhar Bukhari
APTMA Chairman Gohar Ejaz highlights issues facing industry
Says sector capable to shell out 5 time more returns than KLB
If facilitated, textile industry can shell out five time more returns in a fiscal year than the most debated Kerry-Lugar Bill.
This was the upshot of discussion with All Pakistan Textile Mills Association Punjab Chairman Gohar Ejaz other day.
A quite, cool and calm Gohar, who has a thorough command on all the issues being faced by the country, spoke at length particularly on textile industry’s problems.
He was very candid when he said, “we have to establish pro-industrial polices to get back on rails, as people can manage with electricity and gas loadshedding but can’t survive with unemployment”.
“You always need some bitter pills to cure chronic ailments and this time the domestic consumers would have to take some bitter pills, I mean, save energy to run the industry”.
Renowned industrialist, Gohar Ejaz was of the view that there is no acute shortage of electricity or gas, the only thing which the country lacks is dearth of management.
“Things would hardly take any positive turn unless and until both short term and long term policies are evolved,” he maintained.
Gohar, while expressing his concerns over law and order situation said, the nerve-wrecking string of terrorist attacks in the country is virtually proving to be the last nail in coffin of textile industry, which is struggling hard to survive amid unprecedented load shedding, abnormal rise in bank mark and suspension of gas supply to the 400 textile mills in Punjab and NWFP for long five months.
He pointed out that gas disconnection to the textile industry has halted work at the big business houses, as they were not able to keep their wheel moving round the clock due to non-availability of gas to their power plants.
He appreciated first-ever-five-year textile policy in August last, which may take the industry’s exports to $25 billion by 2014, saying that it could extend certain relief to the industry in terms of long term finance, export refinance, and duty drawback if the government be serious to implement this.
“Sadly, the implementation on the relevant SROs is yet a far-fetched idea, as none of the government agencies is in mood of following the guidelines. Even the State Bank of Pakistan has not issued instructions to the banks in order to facilitate the textile industry on LTF and ERF”, he added.
The government now needs to set its priorities and bring about a framework which will give practical meaning to this policy. “Needless to say that this framework should be formulated ASAP, keeping in view that it should be transparent, works fast and should be meaningful to the industry”.
Gohar Ejaz said that more than 200 million people are linked with textile industry and if the government would not implement Textile Policy 2009-14, the 400 textile units would be closed down depriving 2.5 million workers off their jobs.
He maintained that Sui Northern Gas Pipe-lines Ltd (SNGPL) has suspended gas supply to 300 textile mills from October 20 and a notice has been issued that the suspension would be remained till 31 march 2010.
Gohar feared if the government fails to implement new textile policy, mill owners will have no other option left except to close its hundreds of textile units, which may could unemployed 2.5 million people.
He maintained that SNGPL has suspended supply to APTMA’s 90 per cent members in Punjab and NWFP even in the third week of October when the over all gas demand is hanging between 1,600 to 1,700 MMCFD while short fall is of only 160 to 175 MMCFD.
Gohar Ejaz demanded the government to implement Textile Policy initiatives regarding supply of gas to the textile industry by upgrading the priority of gas supply at 2nd place in the Natural Gas Allocation & Management Policy 2005.
He showed grave concern over the gas curtailment of 175 MMCFD of the textile industry in the Punjab in October, as the winter yet to set in.
“Textile industry will lose export of US $ 1 billion to 2 billion per month, about US $ 5 to 6 billion in the financial year, as textile mills will not be able to fulfil export orders for Christmas & Spring season on time”, said APTMA chairman.
“It is high time for the textile industry to get out of recession as the demand for textiles is increasing. Once the orders are lost, international buyers will not depend on us even for the next years,” Gohar said adding that already 90% of the knitwear industry in Punjab with US $ 2 billion export has closed due to terrorism & security concerns.
He maintained that continuous gas supply to the textile industry is of vital importance at this time when industry is poised to recover & meet export orders.
APTMA chairman said that the government has failed to implement the 2nd priority of the textile industry in the priority list of Natural Gas Allocation & Management Policy as recommended in the Textile Policy 2009-14. It is an opportune time to implement the recommendations.
As the domestic load is increasing, it is necessary to educate general consumers to start conservation of gas used in geysers & heaters & save energy to run industry. In the greater national interest.
He urged the federal government and SNGPL to exempt textile industry from gas curtailment and due priority be given to the Export Oriented Textile Industry.
Ha also urged the people to lessen the use of gas during Winter to run the industry. He maintained by promoting gas saver home appliances country can save more than 600 MMCFD gas during the season. He also demanded the government to give subsidy on gas saver home appliances and launch an awareness campaign among masses to keep the wheel moving.
Gohar called upon the government to save the sinking Titanic of textile in order to ensure economic viability of Pakistan.
He said that besides the basic textile, the value-added sector was feeling the pinch hard, as it has received no tangible orders ahead of the Christmas season in Europe, falling within two months from now.
