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Power shortage hits Pakistan's units

Load shedding is affecting Pakistan's textile mills. The problem is particularly serious in Punjab province, which constitutes 70 per cent of the total textile industry in Pakistan.

So severe is the energy constraint that exports to the European Union have declined to 25 per cent in the last three months compared with 40 per cent growth in exports in the first three months after the Generalised System of Preferences plus facility was extended to Pakistan in January 2014.Load shedding is expected to disrupt the supply chain of textile goods predominantly meant for exports.

Following significant reduction in hydel power generation due to unprecedented floods in the country load shedding has not only been increased for domestic consumers but also in the industrial sector where independent feeders are facing power shortages of more than 10 hours.The current electricity demand is 22,000 mw whereas the production is 14,000 mw. Thesupply situation worsened due to the massive line losses, theft and leakages.

Because of continuous load shedding the Punjab-based textile industry has been forced to curtail production, lay off workers and incur losses on commitments with foreign buyers. Market share once lost is almost impossible to regain.

 
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