Since March this year, RLNG has become available on a twenty-four-hour basis for the textile industry
in Punjab. This has enabled your Company to operate its gas fired power plants at full capacity. Not
only the electricity supplied by these power plants is more reliable, cost of electricity produced is 25%
cheaper than the power that your Company was purchasing from MEPCO. Due to this, cost of
production has reduced sharply improving margins. With this major game changing step, your
management expects better days ahead.
Yarn/Fabric prices increased slightly during the quarter. However, raw cotton prices in Pakistan remain
higher than those prevailing in competitor countries due to failure of the Cotton Crop. It is imperative
that GOP takes initiatives to make good quality BT Seed available to farmers so that a better Crop can
be harvested in the future.
Pakistani Rupee remains approximately 15% overvalued against its realistic value as indicated by the
REER. As a result, the country’s exports are suffering and imports are increasing. The situation is not
sustainable. It is high time our Finance Ministry stops interfering in the exchange rate market and
allows the Rupee to find its correct market value.http://fazalcloth.com/FinancialReports/final-fcml-31-march-2016-(Reduced).pdf