At least 300 textile mills have closed in Pakistan due to severe energy crunch and the subsequent suspension of gas supply, says All Pakistan Textile Mills Association (APTMA) chairman Abdul Rahim Nasir.
Earlier this week, Pakistan sought more gas imports on deferred payments from Qatar to restore gas supply to the textile industry on an urgent basis. A 26 per cent upsurge in export of textiles during the fiscal year 2021-22 was made possible only due to the supply of energy at a regionally competitive tariff. The exponential growth in the textile sector has promoted massive investments and the establishment of 100 new textile units, which, after becoming operational, would result in fetching additional exports.
If this momentum is lost due to energy supply and cost constraints, exporters say, Pakistan will be forced to seek additional loans from abroad, which under the circumstances may not even be possible. So the export-oriented industry has underlined the immediate restoration of gas supply. Gas supply to the industry was suspended for a week, which led to the large-scale closure of mills that ultimately resulted in massive layoffs and unemployment. Not only industry but owners of hotels and restaurants are also complaining of a gas shortage, as it is having an adverse impact on their business.
