Shahid Khaqan Abbasi, Federal Minister for Petroleum and Natural Resources recently said the Ministry has offered textile industry a 24-hour electricity supply at 9 cents per unit if the industry stops using natural gas. However, the offer has been declined by representatives of All Pakistan Textile Mills Association (APTMA). Reason: gas is much cheaper and profitable for textile units. The country’s economy has been facing a serious energy crisis. Even Pakistan Textile Exporters Association (PTEA) has termed gas suspension, unilateral and arrogant. Sohail Pasha, PTEA chairman, and Rizwan Riaz Saigal, vice-chairman, while expressing great concern over the Petroleum Minister's statement, said the textile industry, which was already facing problems would be stressed further due to gas curtailment. The government should stop unilateral decisions as Pakistan is going through a serious economic crisis with escalating cost of production.
Nearly 4 billion cubic ft. per day (BCFD), is Pakistan's local output of natural gas. Demand though is for 6.5 BCFD. To bridge this gap, the government has to resolve the issue at the earliest. The country faces an energy deficit, and is gradually increasing its reliance on imported Liquefied Natural Gas (LNG). It also enjoys the lowest rate on gas import from Qatar and would save up to Rs 100 billion per annum because of the differences in price and efficiency. Abbasi said that the government will encourage the private sector to start the import of LNG.
He said that in future imported gas will be needed for domestic and the country’s oil fields are depleting. He believes that only locally produced can compete with LNG. As natural gas is depleting, the only cheaper alternative is LNG and replacing diesel-based power plants with LNG would save Rs 100 billion a year for the economy, he added.
