In a resolute stance against the staggering 223 percent rise in gas tariff over the past year, the All Pakistan Textile Mills Association (APTMA), Southern Zone, has raised serious concerns about the detrimental impact on Pakistan's export-oriented textile industry.
During an Extraordinary General Body Meeting held on Thursday, March 7, 2024, attended by numerous members including Central Chairman APTMA, the association highlighted the dire consequences of the recent tariff hikes. With the textile industry commanding a significant 60 percent share in the country's total exports, the meeting emphasized that the relentless tariff increments have plunged the industry into a crisis.
The meeting underscored that the exorbitant rise in gas tariffs rendered Pakistan's textile exports uncompetitive in the global market, compelling many businesses to face unsustainable financial losses and potential shutdowns. Notably, the gas tariff skyrocketed from Rs 852/MMBTU in December 2022 to Rs 2750/MMBTU in February 2024, marking an alarming overall increase of 223 percent within a year.
APTMA further pointed out the inadequacy of electricity supply in Sindh and Balochistan, forcing industries to resort to gas-based power generation, exacerbating their financial burdens. Moreover, the association criticized the government's policy favoring grid electricity, which is unfeasible in regions with poor supply infrastructure, potentially leading to further closures.
Highlighting the grim scenario faced by the textile industry, Zahid Mazhar expressed grave concerns over the sector's viability in the international market. He lamented the loss of market share to regional competitors like India, Bangladesh, and Vietnam due to the steep energy costs, with gas and RLNG rates far exceeding those of competing countries.
APTMA urged the federal government to reconsider its decision on gas tariff hikes to safeguard Pakistan's textile exports' competitiveness globally. Additionally, the association demanded priority gas supply for industries to meet the ambitious export targets set by the government. Zahid Mazhar appealed to the relevant authorities to address these pressing issues promptly, emphasizing the urgent need for policy revisions to prevent further deterioration of the textile industry.
