KARACHI: Expressing concern over decline in textile exports over the last six months, the All-Pakistan Tex­­tile Mills Association (Apt­ma) has feared further loss in case energy crisis persists.

In a statement, S.M. Tanveer, chairman of the association, apprehended that textile industry will lose $2.3 billion exports in case no immediate remedial mea­sures are taken on energy supply by the government.

Mr Tanveer said that data for September 2014 suggests that exports of cotton yarn and cotton cloth declined by around 22 and 14 per cent over the corresponding period last year.

He further said that growth in value-added sector is also below the potential, particularly in view of the GSP+ facility from the European Union (EU). Exports of bedwear are down by three per cent, he added.

He said the trend is an indication that the textile industry, particularly in Punjab is unable to tap its full potential.

This situation, he said, has disturbed the entire cotton economy as it is also causing problem for cotton farmers, ginners, and the industry itself which is facing eight hours of electricity outages and 16hours of gas load-shedding per day.

The adverse situation, he said, had resulted into closure of 100 mills, fully or partially, in Punjab. He said textile exports are already down by $1bn during April to August 2014 and September data shows there is another $200 million fall in exports.

Increase in industrial tariff twice during 2013 and slapping of 30 paisa per unit equalising surcharge this month has jacked up the off-peak industrial tariff from Rs7.75 to Rs12.50 per unit which has burdened the Punjab-based textile industry heavily.

The Aptma chief urged the prime minister to ensure uninterrupted electricity and gas supply to textile mills, particularly in Punjab.

Published in Dawn, October 26th, 2014