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Islamabad [Pakistan]July 2 (ANI): Pakistan’s textile industry could suffer $1 billion worth of export losses in the first 15 days of July as authorities suspend gas supplies due to gas shortages and the Eid al-Fitr holiday.
Fearing losses, the industry asked the country’s government to restore gas supplies.
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The All Pakistan Textile Mills Association (APTMA) on Friday sent a letter to Pakistani Prime Minister Sheikh Baz Sharif informing him of the consequences of the measures, according to international news reports.
“A 15-day shutdown will result in at least $1 billion in losses, over 50% of output this month, and there is a real risk of losing orders permanently and repeating business delays in delivering orders,” APTMA wrote.
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“Textile exports will drop significantly, causing a lot of damage to Pakistan’s economy. Due to energy supply and cost constraints, Pakistan will be forced to seek an additional $6 billion in loans from abroad, which is not even possible under the circumstances,” it added, Ask the government to immediately restore natural gas/RLNG supplies to export-oriented industries, international news reports.
Earlier, Sui Beibei Natural Gas Pipeline Co., Ltd. notified textile mills of the suspension of receiving natural gas supplies from its own power plants.
After that, the textile industry decided to remain closed from July 1 to 8. Suspension of gas supply will affect industries in Punjab as 70% of textile mills are mainly located in the region.
The source added that the decision to suspend gas supply is to continue uninterrupted gas supply to the power and fertilizer industries.
According to media reports, gas supply shortages have already reduced textile production by as much as 30%, and the recent shutdown will reduce output by as much as 50%, which will affect the country’s economy.
Disruptions to natural gas supplies in these industries have been affecting exports, which, in addition to increasing unemployment, will affect the achievement of the $26 billion target for the next fiscal year.
Pakistan is currently facing a balance of payments crisis and the International Monetary Fund has asked the government to do more to restore its loan line.
Local media reported that since the Sheikh Baz Sharif government came to power in Pakistan, daily necessities have become more expensive and beyond the reach of ordinary people due to recent increases in gasoline and electricity prices. (ANI)
(This is an unedited and auto-generated story from the Syndicated News feed, the body of the content may not have been modified or edited by LatestLY staff)
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