Pakistan News And Discussion-9

[Naresh]

[center]<b><span style='font-size:14pt;line-height:100%'>Textile industry suffers 100 million dollar loss in three days</span></b>[/center]

KARACHI - All Pakistan Textile Mills Association (APTMA) has strongly condemned the crisis resulting from shutdown of gas supply to almost all of its export oriented member mills. The gas blackout started on the 12th of February and has now become the most massive shutdown to ever hit industry in Pakistan, said a statement issued by APTMA on Wednesday.

<b>Association claimed that the textile mills have suffered $100 million loss in just three days in exports due to the shutdown of gas. APTMA has asked the concerned authorities to immediately restore the gas supply to the effected mills.</b>

This shutdown is totally unexpected and without any prior announcement. This may prove to be the final nail in the coffin of the textile industry which is already on the brink of disaster due to heavy losses due to abnormal increase in cost of production. Even the mills that have backup power supplies are unfeasible due to high cost of oil and frequent WAPDA shutdowns. As a result of this blackout there is not only a major decrease in export production but also damage to sensitive machinery which may result in permanent closure.

This major shutdown is a deadly blow to an export oriented industry which has to compete in the world market. The trade deficit which ballooned in January will increase even further in February if gas is not immediately restored to these units. <b><span style='font-size:14pt;line-height:100%'>Textile exports of $ 1 billion per hour</span></b> <!--emo&tupid--><img src='style_emoticons/<#EMO_DIR#>/pakee.gif' border='0' style='vertical-align:middle' alt='pakee.gif' /><!--endemo--> are in jeopardy due to government gas load shedding policies and export targets can no longer be met.

<b>Furthermore international buyers have now started showing concern at Pakistani exporters not being able to meet shipping deadlines due to repeated gas closures and are now looking to place next orders in other countries like <span style='font-size:14pt;line-height:100%'>India, China and Vietnam thereby resulting in permanent loss in export market share for Pakistan.</span></b> <!--emo&:flush--><img src='style_emoticons/<#EMO_DIR#>/Flush.gif' border='0' style='vertical-align:middle' alt='Flush.gif' /><!--endemo-->

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->