APTMA seeks urgent energy relief as strait of Hormuz disruptions threaten exports

The All Pakistan Textile Mills Association has urged the federal government to take immediate measures to secure energy supplies, warning that disruptions in oil and liquefied natural gas shipments through the Strait of Hormuz are exposing Pakistan’s export sector to serious risk.

In a letter sent to Commerce Minister Jam Kamal Khan, Energy Minister Awais Ahmed Khan Leghari and Petroleum Minister Ali Pervaiz Malik, the association said the ongoing geopolitical crisis in the region is constricting oil and LNG supplies to Pakistan, raising energy costs and threatening power sector stability.

APTMA said the power sector’s reliance on imported LNG, particularly from Qatar, has heightened vulnerability at a time when supply lines are under strain. It cautioned that continued disruption could undermine industrial energy security and weaken export performance.

The association warned that higher global energy prices would inflate the country’s import bill and widen the current account deficit. At the same time, increased power and fuel costs would erode the competitiveness of export industries already facing pressure in international markets.

Describing the situation as a dual economic shock, APTMA said the dollar value of energy imports is set to rise sharply while export earnings risk further decline. It added that even if regional tensions subside in the coming weeks, supply chain disturbances and elevated prices may persist for several months.

To mitigate the impact, the textile body called for the immediate suspension of the carbon levy and petroleum development levy on residual fuel oil. It said the move would make RFO commercially viable for captive power generation by export-oriented industries. It further noted that surplus RFO exports are unlikely in the near term due to global supply disruptions, ensuring domestic availability.

APTMA also proposed removing the production cap on domestic gas fields and allocating additional local gas to the power sector. Increasing domestic output, it said, would allow greater reliance on indigenous resources and reduce dependence on costly and uncertain LNG imports during the crisis.

The association urged timely government intervention to safeguard energy security and prevent further erosion of Pakistan’s export earnings amid mounting external pressures.