Gas Outages May Lead to Labor Unrest in Textile Sector - November 16, 2011

All Pakistan Textile Mills Association has warned that Gas outages for three days will make it difficult for employers to retain their workforce which may trigger the labor unrest in the country. APTMA has informed that textile industry is largest earner of foreign exchange (over 50%) and accounts for 40% of the manufacturing sector. Keeping in view the depressing state of economy and increasing unemployment, textile sector has the highest potential to increase exports therefore Government should focus more on labor-intensive textile sector. However, the 3 day gas load-shedding in a week is not only hurting the textile sector (which had the target of $16 billion this year) but may also lead to labor unrest when redundant workforce is fired. Gas supplies were curtailed for 120 days in the first 10 months of this year while gas supplies were suspended only for 75 days last year. The additional 45 days gas suspension have led to the decrease of $1.5 billion in exports.

Source: Published in The News, November 16th, 2011