Textile industry warns of collapse as govt cuts gas supply to Captive Power Plants

The Pakistan Textile Exporters Association (PTEA) has issued a strong warning over the government’s decision to cut gas supply to Captive Power Plants (CPPs) from January 1, 2025, calling it a severe threat to the $19 billion textile export industry. 

In a joint statement, PTEA Patron-in-Chief Khurram Mukhtar and Chairman Sohail Pasha highlighted that the industry, which heavily depends on CPPs for reliable power, faces disruption that could lead to widespread closures and job losses.

The PTEA noted that textile units have invested billions in gas-based power infrastructure, with 480 CPPs operating on the SNGPL network and 800 on SSGC. They argued that the power grid, plagued by transmission and distribution losses, cannot meet the industry’s needs, risking damage to sensitive machinery due to frequent outages.

Moreover, PTEA officials stated that CPPs provide more efficient energy than government plants, offering both power and steam essential for industrial processes. 

They emphasized that the lack of CPPs would lead to a surplus of RLNG, resulting in significant financial losses for the sector, which is already struggling with a Rs2,700 billion circular debt crisis in the gas sector.

The association also underscored the impact on international commitments, stressing that the textile sector is bound to supply value-added products globally. Without immediate alternatives, the sector could face mass shutdowns, weakening Pakistan’s export potential and economic stability.