Appreciating export packages worth Rs 180 billion by the federal government, the All Pakistan Textile Mills Association (APTMA) Chairman Aamir Fayyaz has pointed out that energy cost was yet hampering the growth of textile industry, as it was unable to pass it on to the international buyers due to a severe competitive situation in the region.
Addressing a press conference in the APTMA Karachi office, he said the energy, both electricity and gas, was a prime factor in the cost of doing business for the textile industry. On the electricity side, he added, the textile industry tariff was loaded with various types of surcharges, system inefficiencies, and recovery losses.
“The government was charging Rs 3.63 per unit surcharge which needed to be waived off immediately for the five exporting sectors,” he asserted.
He urged the government to supply electricity at Rs 7 per unit and ensure a level playing field by introducing one energy price throughout the country.
He said so far as the gas supply is concerned, the government was providing it from domestic and imported sources with two different tariffs.
“The domestic supply is available at Rs 600 per MMBTU plus Rs 200 per MMBTU against GIDC whereas the imported supply at Rs 950 per MMBTU,” he added.
He said the textile mills heavily dependent on imported gas supply are deprived of a level playing field within the country.
“The government should introduce the weighted average price of gas, both for domestic and imported supplies, to encourage new investment in the textile industry,” he emphasised.
Chairman APTMA has demanded availability of electricity at Rs 7 per unit and gas at Rs 600 per MMBTU to the textile industry, particularly the one located in the province of Punjab to bring down the cost of doing business in real terms.
He said the textile industry could only benefit from the China-Pakistan Economic Corridor if the government ensures a level playing field to compete domestically as well as regionally.
He said rationalisation of energy tariff would revive the potential idle capacity of worth $4 billion that would give boost country exports.
