Pakistan has lost $250m worth of textile exports in December 2021 when the gas supply was suspended for 15 days in the Punjab textile sector.
Executive Director of All Pakistan Textile Mills Association (APTMA), Shahid Sattar also confirmed the loss of millions of dollars by saying that it will “never be recovered.”
The government restored gas supply on December 29 with the supply of 75 million cubic feet per day (mmcfd) by mid-January and ensured that the supply would be increased up to the finest level after the extreme winter season was over.
On the other hand, the sources said that the gas being supplied to the export sector is less than the government announced despite the industry purchasing gas at $9 per Metric Million British Thermal Unit (MMBTU), instead of $6.5 mmcfd during the winters.
The ministry of Commerce sources also revealed that the smooth supply of electricity was not received by the textile mills in Punjab from the national grid due to interruptions. They further added that it is causing huge losses to the industry, which may go up to $250-400 million per month.
The textile mills association also sent the letter to the Advisor to Prime Minister on Commerce and Textiles Abdul Razak Dawood on January 7, in which they expressed their serious concern over the interruptions in the supply of electricity.
The letter said, “Each interruption wastes half an hour and up to two hours in restarting the machinery, resulting in losing material and rendering capacity grossly underutilized.”
It further added that mills were currently running on 80% capacity, which signifies a 20% loss of exports. “And this adds up to losses between $250-$400 million in exports lost every month”.