Addressing a meeting called to review power related issues in Pakistan, All Pakistan Textile Mills Association Punjab chairman SM Tanveer said that there is a need for special power tariff for textile industry. He insisted that the government should look into providing regionally competitive tariff along with uninterrupted gas and electricity so that the industry can take advantage of the GSP Plus facility provided by the EU.
He pointed out that while the electricity tariff in India is 10.5 cents, in Bangladesh 10.75 cents and in Sri Lanka it is again 10.75 cents, in Pakistan the tariff is 15 cents, which is 45 per cent higher as compared to the neighbouring countries. So industry players have to pay double tariff compared to the tariff offered by other countries to their trade and industries, leaving Pakistan uncompetitive and unviable in the international market.
APTMA Punjab Chief added that due to severe load shedding losses to the textile industry are unbearable and the cost of production has increased manifold as compared to competitors in the region. The viability of the industry will be totally eroded if the government fails to resolve energy-related issues.
He also informed that due to load shedding and shortage of gas supply as well as rising production costs, during the last few months, about 375,000 spindles have stopped operation in Lahore and Faisalabad, some 312,000 in Multan and 158,000 in Rawalpindi. Production of more than 100 spinning mills have also been reduced in Punjab as the industry is operating only in one shift.
