LAHORE: Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has demanded equal distribution of gas and power supplies in the country as except Punjab, industries in all other provinces enjoying uninterrupted energy provision.
PRGMEA Chairman Ijaz Khokhar said that due energy crisis, the country has exported textile made goods worth of $4.6 billion during July-October 2014-2015 against $4.7 billion of the same period of the previous year, showing drop of 1.54 percent.
“Punjab industry is trying to cope with growing cost of production because of gas shortages, high electricity tariff and stuck-up sales tax refunds,” he said
“The government should provide level-playing field by raising gas and power supplyto the industry to help exporters cut their energy costs and release billions of rupees stuck in sales tax refunds,” he said. He said that due to gas shortages, mills cannot process our fabric in time and the sewing units simply cannot guarantee on time deliveries of export shipments. With this productivity level we cannot compete with Bangladesh let alone India or China.”
Ijaz Khokhar said that government was anticipating enhancing country’s exports by $1 billion annually following getting GSP plus status. However, things moved in opposite direction, as exports plunged in last several months mainly due to the ongoing energy shortage. The country’s overall exports have shrunk by 6.86 percent in July-October to $7.98 billion from $8.56 billion of the corresponding period last year.
PRGMEA North Zone Senior Vice-Chairman Malik Naseer, observed that the government seems unable to address the business community problems in short-run, as it could not provide gas to the textile units due to scarcity of gas in the country.
