Load-shedding causing productivity loss

Current spell of load-shedding is causing productivity loss of Rs1 billion a day to the textile industry besides threatening the livelihood of 2.28 million textile workers and around 500,000 of them have already lost their jobs.

A study reveals that the textile industry’s total production value is Rs. 1.080 trillion, of which 85% of the output amounting to Rs. 861 billion ($10.5 billion) is exported in the form of yarn, fabric, apparel and made-ups and remaining 15% of textiles are consumed in the country.

According to industry circles, the decline in production due to power and gas shortages comes to around 33%. When divided with 360 working days, the industry’s productivity comes to Rs3 billion a day, which means it is suffering a production loss of Rs1 billion daily due to current gas and power outage.

Textile accounts for 38% of the workforce of 6 million employed in the manufacturing sector of the country as it provides jobs for 2.8 million workers. It has been found that composition of the textile industry is such that a problem in one sub-sector impacts the entire chain. Yarn sales drop if there is any problem in sizing or weaving sectors. Apparel production stops if productivity in weaving or finishing sector comes under stress.

Currently, the textile industry is facing problems due to inconsistent power supply to its different sectors. The government has assured regular power supply to textile units for 18 hours, while load-shedding has been reduced to six hours daily. This facility is available to units getting power supply from industrial feeders while units that are getting supply from domestic feeders.