Daily Times

Every now and then, we hear of the textile industry going through “an extremely difficult” time amid pledges to put the sector back on a good track.

Just weeks after experts were pinning hope on flux in the world market as manna from heaven for Pakistan, which appeared well-positioned to absorb Bangladesh’s displaced orders, exporters warn of mass closures if the government proceeds with its policy to disconnect gas to Captive Power Plants.

Considering how Islamabad is under great pressure from the Fund to phase out these gas-based plants in a transition to the national electricity grid in light of unavoidable evidence of their inefficiency eating up the lion’s share of the subsidies, demanding a commodity we are running in acute shortage of does not make much sense. However, just as excruciating appears the dilemma for the textile industry long touted as a potential powerhouse in the global market, given its rich history and expertise.

It would be a gross injustice to throw a spanner in the works on the heels of expecting it to fill the vacuum and finally capitalise on its potential. Textile leaders have repeatedly asked the government for reduced energy prices if it wishes to make a mark.

According to them, stifling policies leave the sector unable to rise to the challenge despite being one of the largest contributors. It goes without saying that the over-reliance on gas not only makes the industry vulnerable to potential disruptions but also hinders its competitiveness in the market, whose rapid evolution calls for constant innovation and adaptability. Local companies would be in a much more profitable position if they prioritise renewable energy sources to address the said excessively high energy costs.

The government’s decision to avoid entering these turbulent waters, particularly as there seem to be no new reserves and the existing ones are nearing depletion, necessitates an immediate and comprehensive medium-term strategy.

This approach will allow the industry to be gradually weaned off the supply. This jump from gas to grid should be designed in a manner that does not cripple a major contributor to the economy any further. *