The Pakistan Yarn Merchants Association (PYMA) has issued a stark warning about the potential shutdown of the textile industry due to high-capacity charges imposed by Independent Power Producers (IPPs). During a meeting, PYMA Chairman Sheikh Khalil Qaiser, along with Senior Vice Chairman SohailNisar, Vice Chairman JaweedKhanani, and members of the Executive Committee, urged the government to reconsider and potentially cancel existing contracts with IPPs to protect the economy. PYMA officials highlighted the critical situation facing the textile sector, which is already struggling with unsustainable costs due to elevated energy tariffs. They warned that additional capacity charges from IPPs could force many industries to cease operations, severely impacting exports and overall economic stability.
“The government claims to prioritize economic stability and national development, yet such policies jeopardize industrial operations,” PYMA officials stated in their appeal to the government. The association criticized the government for making substantial payments to IPPs despite minimal electricity generation, calling into question the transparency of these agreements.
They pointed out that current contracts obligate the government to purchase electricity at an exorbitant rate of 750 rupees per unit from certain IPPs, urging greater transparency and accountability to alleviate the business community’s concerns. “The burgeoning capacity charges imposed by IPPs have rendered electricity rates unaffordable.
Without intervention, industrial closures loom ahead,” PYMA officials added. PYMA office-bearers called for immediate government intervention to reduce production costs, sustain industrial operations, and bolster exports. They stressed the need to lower electricity and gas rates by revisiting contracts with IPPs, ensuring uninterrupted industrial activity and fostering economic growth.
