Pakistan Textile Council warns Rs1,243/MMBtu gas levy risks export push, investor confidence

The Pakistan Textile Council (PTC) has criticized the Petroleum Division’s imposition of a Rs1,243 per MMBtu levy on off-grid captive power plants for December 2025 under the Off-Grid (Captive Power Plants) Levy Act, 2025, calling it a policy shock to the export economy.

The council said the levy has jumped from Rs402 per MMBtu to Rs1,243 per MMBtu within months, with an embedded 20% escalation mechanism, sharply raising costs for export-oriented industries.

PTC warned that the impact is already visible, with export-sector gas demand collapsing, national linepack breaching critical thresholds, 300 MMCFD of domestic gas curtailed, LNG cargoes diverted, and gas utilities facing throughput shocks.

In a statement, the council said the measure comes as Pakistan targets $60 billion in exports under the Uraan Pakistan initiative, arguing the levy burdens industries that generate foreign exchange, employment, and industrial growth.

PTC Chairman Fawad Anwar said imposing a levy above OGRA-notified sale prices erodes tariff finality, adding that executive overlays on regulated prices prevent investors from hedging risks, industries from planning, and banks from financing projects, increasing sovereign risk in a fragile economy.

The PTC urged the government to restore regulator-led pricing, protect high-efficiency cogeneration, remove cross-subsidies from commodity pricing, and align energy policy with export competitiveness and macroeconomic stability.