The All Pakistan Textile Mills Association (APTMA) Southern Zone has strongly opposed the Economic Coordination Committee’s decision to raise gas tariffs for Captive Power Plants (CPPs) by 16.7 per cent, from Rs 3,000/MMBTU to Rs 3,500/MMBTU. APTMA warned that this move could severely impact Pakistan’s export-oriented textile sector, which contributes 60 per cent to the country’s total exports.

APTMA’s spokesperson, Naveed Ahmed, criticized the increase, calling it the ‘final nail in the coffin’ for an industry already grappling with high production costs and global competition. He highlighted that gas tariffs have rised by 311 per cent over two years, making energy costs prohibitively expensive. "With the highest energy costs in the region, coupled with high borrowing and taxation, Pakistani textiles are losing their competitive edge," he stated.

The tariff hike disproportionately targets CPPs while leaving other sectors, such as fertilizer and domestic users, unaffected, a move APTMA deems discriminatory. Ahmed noted that many industries in Sindh and Balochistan rely on gas-based CPPs due to unreliable grid electricity.

Ahmed further emphasized that billions of rupees have been invested in CPPs to ensure uninterrupted power supply, as grid electricity remains inconsistent and inadequate. He urged the government to reverse the tariff hike to protect export markets and meet growth targets set under the Uraan Pakistan Program.

APTMA called for fair energy policies, warning that without immediate action, Pakistan risks losing its hard-earned global textile markets.