Though, the effect of gas rate hike would be varying for different industries of the textile sector, the badly hit would be spinning, weaving and value-added garment industry .Tanveer Ahmed Sheikh, President Federation of Pakistan Chambers of Commerce & Industry (FPCCI), pointed out that 68 percent increase in the gas price for captive power plants is tantamount to murder of industry, especially textile, which is mainstay of the country’s exports. Zubair Motiwala, Former President Karachi Chamber of Commerce & Industry (KCCI), said that textile Industry is hardest hit in this scenario because for the value added textile industry, gas has a major share in the energy component of the cost. Already, our wrong policies have cushioned our competitors in the world market and this decision cannot be called wise, Motiwala deplored .Mr Iqbal Ebrahim, Chairman, All Pakistan Textile Mills Association (APTMA) strongly criticized announcement of increase in gas prices by the government and urged to immediately withdraw the rise in gas tariff and on captive power plants. APTMA chief termed the devastating rise in gas tariff as “last nail in the coffin” for the ailing industry, especially textile sector that is the backbone of the economy and earns much needed foreign exchange .He said that by installing captive power plants with huge investment, industry facilitated the power supply companies by lowering their burden which is the responsibility of the government. But to the detriment of the industry, this unprecedented rise in gas tariff has pushed it in difficult situation.Source: DailyTimes.com
Date:7/2/2008
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