Pakistan is hit by back-to-back crises including the risks of an economic collapse, power, energy and others after the Pakistan Muslim League Nawaz (PML-N) government came into power which affected almost all sectors of the country.
In a recent announcement, the Sui Northern Gas Pipeline Limited (SNGPL) announced the cut gas supply to the textile mills for more than a week from July 1 to 8 which would cause a $1 billion financial loss.
A few days ago, the All Pakistan Textile Mills Association (APTMA) has written a letter to Prime Minister Shehbaz Sharif to set energy prices before June 30, 2022, after taking regionally energy prices.
The association had asked the government that the gas and electricity price agreement to lapse on June 30, 2022, and the export sector is unable to book orders beyond June as energy price has to be set to make the final cost of the goods.
The suspension of the gas supply caused a halt to the textile primarily in Punjab as 70 per cent of textile mills are located there. According to SNGPL, the shortage of gas supply has already reduced textile production up to 30 per cent, whereas, the latest suspension will reduce their output up to 50 per cent.
The interrupted gas supply to the industries has been affecting the exports that will impact the achievement of the $26 billion targets for the next fiscal year besides increasing unemployment. According to ARY News, the decision for suspending the gas supply was taken to continue uninterrupted supplies to the power and fertiliser sectors.
The APTMA apprised the government that the exports of textile products have $20 billion, whereas, the textile exports stood at only $12.5 billion during the last two years.
Economic experts have also warned the federal government of an increase to the current account deficit if there is a decline in textile exports. They added that the declining textile exports could increase government borrowing.