Pakistan: Textile mills cut one-third of jobs
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Forbes [2011-05-20]
All Pakistan Textile Mills Association (APTMA) has urged the government to utilise all power generating capacities available in the country and suspend duties on furnace oil to ensure cheaper electricity generation.
Addressing a press conference, newly-elected APTMA Chairman Tariq Mehmood said the entire textile chain was currently in deep trouble due to six to eight hour electricity load-shedding and suspension of gas supplies to textile industries in Punjab and NWFP.
Besides bearing billions in production losses, he said, textile mills have been forced to cut one shift and lay off one-third of staff rendering thousands of workers jobless.
APTMA Energy Committee Chairman Shafqat Elahi said practical solution to the problem lies in converting all WAPDA抯 thermal plants to furnace oil and providing saved gas to the textile sector. Elaborating this, he pointed out that thermal efficiency of WAPDA plants is only 18 per cent.
Moreover, line and distribution losses are also very high, whereas thermal efficiency of textile units is 38-50 per cent which would ensure higher electricity supply from gas spared from WAPDA plants.
He said another step that would reduce the use of gas is to equate prices of CNG with petrol for 45 to 60 days of severe winter. He said CNG stations could be compensated for higher gas price in the remaining 10 months.
APTMA Punjab Chairman Akber Sheikh said all textile chains have put on hold their export growth plans because of uncertain supply of power and gas. He said with 30 per cent production curtailed textile exports remain stagnant at $10 billion.
He said this sector provides 40 per cent of industrial employment in the country and laying off textile workers is a bad omen for the economy.