LAHORE: The All Pakistan Textile Mills Association (Aptma) has expressed concern over a continuous decline in textile exports over the last six months and apprehended further loss in case the energy crisis persists, particularly in the upcoming winter.

“Data for September 2014 suggests that exports of cotton yarn and cloth declined by around 22 per cent and 14 per cent, respectively, against the corresponding period,” Aptma Central Chairman SM Tanveer told newsmen here on Saturday.

He said growth in value-added exports goods was also below the potential, particularly in view of the GSP Plus facility from the EU. The exports of bed wear were also down by over three per cent.

“Export figures have been showing a declining trend since April 2014 by 26 per cent and 11 per cent in yarn and cloth, respectively, on an average against the corresponding period. An unprecedented fall in exports, especially basic textile including yarn and cloth, is a clear indication of the fact that the industry, particularly the Punjab-based, is unable to tap its potential in accordance with its capacity,” said Mr Tanveer. It was becoming difficult for textile millers to procure cotton, a situation causing problem for farmers, ginners and the industry itself, he said and added the prime reason behind the prevailing situation had been eight hours a day electricity and 16 hours a day gas loadshedding for the Punjab-based textile mills. This adverse situation had resulted into the closure of 100 mills, both fully as well as partially, in the province. He said textile exports were already down by $1 billion from April to August 2014, and the September data showed that there was another $200 million decline in exports. Mr Tanveer apprehended that the textile industry would lose $2.3 billion exports in case no immediate redressal on energy supply was taken up by the government.

An increase in the industrial tariff twice during 2013 and the slapping of a 30 paisa per unit equalisation surcharge this month had jacked up the off peak industrial tariff from Rs7.75 to Rs12.50 per unit, which had burdened the textile industry heavily, as it was consuming 84 per cent of the total industrial consumption on Pepco network.

The average cost of energy in other provinces was Rs7 per unit due to uninterrupted gas supply to the captive power plants. Accordingly, the Punjab-based textile mills had been burdened with Rs80 billion additional cost due to tariff increase, he said.

Non-availability of energy had been adding fuel to fire in this situation, leading to large-scale closures where already an export potential of $3 billion was non-operational, he said while urging the PM to ensure uninterrupted electricity and gas supply to the textile mills, particularly in Punjab, to keep exports and employment intact and increase in productivity for economic growth of the country.

Published in Dawn, October 26th, 2014