Daily Times

The industrialists attached with the textile sector have announced a sit in coming week threatening they will close their units if the government will not withdraw the decision of new utility rates.

Addressing a press conference at the Pakistan Hosiery Manufacturers and Exporters office here in Faisalabad on Monday, the association senior vice chairman Amjad Khawaja said industrial sector of the country is facing crises.

Referring to the recent talks between the government and the International Monetary Fund (IMF), he said the energy crisis, abnormal increase in electricity and gas prices and uncertain exchange rates have threatened the survival of the export sector. He said we have knocked every door but till now the government has not responded. He said many units are running at less than 50% efficiency while inflation has made it difficult for the workers to live.

He said workers are like their family and the industrialists cannot remain isolated from their problems and sufferings, so they will also participate in their protest. He said exporters do not want subsidy but equal energy rates from regional countries which the government was already following. But now the facility is being withdrawn only for the 1.5 billion dollar installment from the IMF which is tantamount to kill the hen that lays the golden egg.

The PHMA chairman said the government is badly entangled in political matters and does not fully understand the real problems of the people. He said before the change of government, Pakistan’s exports were 32 billion dollars, in which the share of textiles was 24 billion dollars. Unfortunately, now the share of 24 billion dollars has reduced to 19.5 US dollars. He said the garment sector, which was developing rapidly is now facing deterioration.

It feels the government is pushing the country into a dead end, he lamented.

Faisalabad Chamber of Commerce and Industry President Dr. Khurram Tariq claimed that the IMF has not directed the government to increase the rates of electricity and gas. He said IMF only wants to ensure 100% recovery of electricity being generated and reduce its line losses.

He said currently the recovery of Rs 1 trillion is not being done in the power sector, which is continuously increasing. He said whenever we raise this issue, we are told that it is political economy and thus the stolen electricity and line losses are forcefully collected from the consumers. He said electricity worth Rs 380 billion was stolen during the last 7 months, which would increase to Rs 520 billion by the end of this year.

Referring to Nepra’s annual report, he said that Fesco’s line losses are only 10% while Pesco’s losses are 38%. He further said that currently the export sector is getting electricity at Rs 20 which will increase to Rs 40 per unit.

Similarly, Sindh is getting gas for 4.5 dollars while the same gas is being given to Punjab for 9 dollars. He said that when this issue is raised, the authorities refer to the Eighteenth Amendment.

He said that like electricity and gas, the exporters are also facing financial loss because the government has increased the rate of sales tax to 17-18% and refunds are not being paid. He said that the September refunds, which are worth 4 billion, have not been received so far.

It feels the industry is being systematically shut down, . undoubtedly some of the problems are new and some are old, but the real issue is management and governance.

Other industrialists also spoke on the occasion.