KARACHI, Nov 22: Rejecting government’s decision to increase gas tariff by 6.5 per cent early next year, textile trade bodies apprehended that it would prove fatal to entire sector and result in more shutdowns and closures.

In a joint press conference held at the PHMA House on Thursday, over half a dozen textile trade bodies were also highly critical of the role of the Oil and Gas Regulatory Authority (Ogra).

The representatives of these bodies were unanimous in their view that the Ogra is not an independent body because the government had been using it for its own objectives.

They alleged that instead of protecting and safeguarding consumers’ interests, Ogra had been persistently promoting government interest by immediately implementing decisions of increasing tariff and holding back those which propose reduction.“It is highly condemnable that Ogra wastes no time in issuing notification which proposes tariff hike in gas but holds back those announcements which suggest reduction,” a leading textile tycoon lamented.

The leaders of these trade bodies cautioned the government that 6.5 per cent hike in gas prices would increase cost of doing business of textile sector by around three per cent and this would be a great setback to the crisis-ridden industry.

Strong resentment was shown by the representative of these bodies over subsidy being given by the government in gas tariff to fertiliser sector and said all this was being done at the cost of other consumers and textile sector, in particular.

These leaders fore-warned the government that if gas tariff hike decision was implemented, more apparel textile and spinning units would close down and thousands of workers would be rendered jobless.

It was pointed out that already 150 hosiery and knitwear units have closed down and after the increase in gas prices, more will fall sick owing to high cost of doing business.

The short crop has resulted in higher prices of cotton and pushed the production cost higher and gas being second highest component in production of textile goods will prove as a last straw, these leaders observed.

The R&D support of six per cent being given by the government to some sectors of textile had been already diluted and on implementation of Ogra decision of 6.5 per cent hike in gas tariff from Jan 1, 2008, the working of entire industry would become unviable, the participants warned.

Textile industry leaders said that India and China were already capturing their share of world market on getting different subsidies from their governments, but against this our cost of doing business was going higher and higher on each passing day.The joint press conference was addressed by Zubair Motiwala of the All-Pakistan Textile Processing Mills Association, Naqi Bari chairman PHMA, Naseem Farooqui of Pakistan Knitwear and Sweater Exporters Association, Nisar Shekhani, Mohammad Muzzammil Hussain, chairman, Towel Manufacturers Association and Dawood Jakora of Pakistan Readymade Garment Manufacturers and Exporters Association.

Though representatives of All-Pakistan Textile Mills Association (Aptma) Iqbal Ibrahim and chairman, Pakistan Bedwear Exporters Association, Shabir Ahmed, were unable to attend the press conference, they fully supported the demands and decision taken in the meeting.