Pakistan loses $250m value of textile exports on account of fuel scarcity

Pakistan has misplaced $250m value of textile exports in December 2021 when the fuel provide was suspended for 15 days within the Punjab textile sector.

Govt Director of All Pakistan Textile Mills Affiliation (APTMA), Shahid Sattar additionally confirmed the lack of tens of millions of {dollars} by saying that it’ll “by no means be recovered.”

The federal government restored fuel provide on December 29 with the provision of 75 million cubic ft per day (mmcfd) by mid-January and ensured that the provision could be elevated as much as the best degree after the intense winter season was over.

Then again, the sources mentioned that the fuel being equipped to the export sector is lower than the federal government introduced regardless of the trade buying fuel at $9 per Metric Million British Thermal Unit (MMBTU), as a substitute of $6.5 mmcfd in the course of the winters.

The ministry of Commerce sources additionally revealed that the sleek provide of electrical energy was not obtained by the textile mills in Punjab from the nationwide grid on account of interruptions. They additional added that it’s inflicting large losses to the trade, which can go as much as $250-400 million per 30 days.

The textile mills affiliation additionally despatched the letter to the Advisor to Prime Minister on Commerce and Textiles Abdul Razak Dawood on January 7, wherein they expressed their critical concern over the interruptions within the provide of electrical energy.

The letter mentioned, “Every interruption wastes half an hour and as much as two hours in restarting the equipment, leading to shedding materials and rendering capability grossly underutilized.”

It additional added that mills had been at the moment working on 80% capability, which signifies a 20% lack of exports. “And this provides as much as losses between $250-$400 million in exports misplaced each month”.

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Zain Ali

Zain Ali



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