The Chairman of the All Pakistan Textile Mills Association Southern Zone, Zahid Mazhar, has vehemently opposed the recent substantial surge in gas tariffs for export-oriented industries, emphasizing its potentially devastating consequences for the already struggling textile sector. 

The unprecedented 118% increase in gas prices, soaring from Rs. 1,100/MMBTU to Rs. 2,400/MMBTU, is expected to inflict further damage on Pakistan's exports, particularly in the textile domain. This price hike disproportionately affects textile industries in Sindh and Balochistan compared to those in Punjab. It deviates from earlier assurances that natural gas tariffs for export process and export captive industries would be equivalent, introducing a discriminatory price difference of Rs. 300/MMBTU.

Mazhar highlighted that this gas tariff surge, coupled with high electricity costs, poses a severe threat to an industry already grappling with exorbitant markup charges and input expenses. While the Oil and Gas Regulatory Authority (OGRA) had recommended a modest increase of Rs. 250/MMBTU, the government opted for a staggering Rs. 1,300/MMBTU hike, raising doubts about its commitment to supporting the export sector.

He expressed concern about the underutilized capacity of textile industries in Sindh and Balochistan due to gas supply shortages, leading to a loss of around 20% in exports. The soaring gas prices could force these industries to shut down, leading to increased unemployment and potential social unrest. 

Mazhar urged the government to focus on eliminating gas theft and leakages to reduce the gas circular debt instead of raising prices. He also called for attention to reducing Unaccounted for Gas (UFG) and criticized the burden of cross-subsidies falling on the export sector. He appealed to the government to reconsider the gas price increase to prevent further harm to Pakistan's deteriorating economy.