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  • Feb 17th, 2005
  • Comments Off on Gas price increase to hit exports: APTPMA
All Pakistan Textile Processing Mills Association (APTPMA) Chairman Sheikh Muhammad Ayub, expressing grave concern over the prospect of enhancement of gas prices, has contended that it would adversely affect the performance of export-oriented industries, especially during the post WTO era. In a statement issued by APTPMA Headquarter, Faisalabad on Wednesday, Sheikh Muhammad Ayub said that it is a known fact that the textile processing sector is one of the most value-added, export-oriented, labour intensive, and revenue-generating sectors of the textile industry in Pakistan, which accounts for as much as 65 percent of its national export earnings.

Sui gas has assumed the status of a basic raw-material for this sector by way of inputs, and the slightest increase in its price results in a corresponding increase in our cost of production, he added.

"Our exporters have all along been operative at a minimal margin of profit, and have now to face the uphill task of staying competitive in the international export market during the forthcoming WTO regime," Shaikh said.

Oddly enough, however, the Oil and Gas Regulatory Authority (OGRA) has allowed SNGPL and SSGCL to enhance the gas tariff for all categories of consumers by as much as 8.25 percent with effect from 1st February 2005.

This injudicious decision, if not withdrawn forthwith, shall oust the Textile exporters of Pakistan from the international export market during the forthcoming WTO regime who shall, God forbid, be constrained to close down, argued Sheikh Ayub.

He said that the WTO would deprive the exchequer of valuable forex and revenue to the tune of billions of rupees, besides throwing thousands of wage-earners out of jobs, while billions of rupees invested in installing and upgrading sophisticated textile processing units in Pakistan shall go down the drain.

Concluding, he said that the government would be well-advised to withdraw the proposed enhancement for the industrial consumers and/or, at least, to absolve the export-oriented industries from the proposed enhancement, enabling them to bear the brunt of WTO, failing which our coveted dream of meeting its vast challenges shall remain a far cry.

Copyright Business Recorder, 2005


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