8/7/2019 Industrialists deplore gas outage in summer

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Industrialists deplore gas outage in summer

LAHORE: Industrialists in Punjab have said that continuation of gas load shedding insummer proves the incompetence of the gas distribution company.

All Pakistan Textile Mills Association (APTMA) Chairman Gohar Ejaz said that theincentives given by the government to exporters would go in vain, if gas supplies tothe industries in Punjab remained disrupted for several days a week.

Talking to reporters on Monday, he said that the textile industry was geared up toearn another $4 billion in the last quarter of this fiscal to take textile exports thisyear to $14 billion. We have already achieved an average export of $1.2 billion amonth in the third quarter, he said.

He claimed that the industry was all set to achieve export of more than $1.3 billiona month during the last quarter. But, he said, with the current volume of gas supply,exports would barely touch $2 billion in the quarter.

The APTMA chairman warned that the textile sector would not survive, if its energysupplies were curtailed by 50 percent. Mills would soon start defaulting on theirloans, he said.

He said it would be unfortunate to let the most vibrant and efficient segment of theeconomy go bankrupt because of flawed priorities of Sui Northern Gas PipelineLimited.

He said this brake on gas supplies was applied at a time when the economicmanagers of the country had addressed all concerns of the industry about zerorating of exports and sales tax on domestic consumption of textile products. Forthe first time the entire textile chain has shown willingness to get itself documentedand enlarge the tax base, he said.

Gohar said that APTMAs members would import LNG by forming a consortiumbefore winter if the government gave a go ahead.

Adil Butt, a leading knitwear exporter, said that many high-tech machines in theknitwear sector operate with natural gas only. He said that with supplies curtailed tothree and a half days a week the production would shrink by half.

I am all set to double my production capacity, he said. But it would be difficult tofulfill commitments if gas supplies remained uncertain. He said there was nojustification for curtailing gas supplies in summer as conditions remained the sameas last October.

Almas Hyder, an engineering entrepreneur, said that the government should haveexercised the option of importing LNG by now. He said that adding 600 million cubicfeet per day (mmfcd) of LNG to the 4,000 mmcfd national gas supply system wouldincrease the cost by 15 percent, but it would ensure smooth supplies to every one.