The All Pakistan Textile Mills Association (APTMA) , Southern Zone, strongly opposes the recent increase in gas tariff, citing its detrimental impact on the export-oriented textile industry of Pakistan. This stance was affirmed during the Extraordinary General Body Meeting held on Thursday, 7th March 2024, with the attendance of numerous members, including Central Chairman APTMA.
The meeting highlighted the alarming 223 percent increase in gas tariff over the past year, labeling it disastrous for the textile industry, which holds a substantial 60 percent share in the country’s total exports. The steep rise in gas prices has rendered the industry uncompetitive in the international market, leading to significant financial losses and the potential closure of numerous firms. Zahid Mazhar, a representative at the meeting, underscored the adverse effects of the gas tariff hike, noting a 30 percent capacity closure in the textiles and apparel sector, with remaining firms at high risk of closure.
He emphasized that Pakistan’s export capacity in the textile industry remains underutilized due to inflated energy costs, making it less competitive than regional counterparts like India, Bangladesh, and Vietnam.
Furthermore, concerns were raised about the inadequate capacity and reliability of electricity supply from companies like K Electric and HESCO in Sindh and Balochistan. The meeting argued against the government’s push for grid electricity usage, citing the poor infrastructure and supply constraints in these provinces, which could lead to mill closures instead of increased electricity consumption. Zahid Mazhar highlighted discrepancies in gas tariff rates and policies, including discrimination in blended gas ratios and the imposition of RLNG usage despite significant natural gas production in Sindh and Balochistan.
He called for a reversal of the gas tariff increase and urged the government to prioritize industry needs in gas supply to support the textile export target of $50 billion. APTMA demanded government intervention to address the adverse impact of energy price hikes on the textile industry’s competitiveness in global markets. They called for a review of gas and electricity policies to ensure the sustainability of the export-oriented textile sector in Pakistan.
