Textile Millers Mount Gas

All Pakistan Mills Association (APTMA) President of the Southern Zone Naveed Ahmed have described the recent decision by the Economic Coordination Committee (ECC) to increase the Gas Invoice for Power Stations (CPPS) from RS3,000 per million British Thermal Units (MMBTU) In RS3, 500 per mmbtu as anti-exports, which will be devastating for the textile industry with a 60% share in the country’s exports.

It has asked the federal government to reverse its decision on an unprecedented increase in the gas invoice to make exports of textiles competitively on the international market, which was constantly eroded by rising energy prices over the past two years.

He said the government increased the gas invoice only for CPPs only while invoices for all other areas, including fertilizers and processing companies, as well as domestic consumers had remained unchanged. “This targeted distinction is not acceptable.”

Naveed Ahmed said the recent increase in 16.7% of invoices for CPPS industries and the use of gas for the production of electricity for the operation of mills was the last nail in the exporting -oriented textile flavor.

He called the textile sector the backbone of Pakistan’s exports, which not only won the required foreign currency, but also provide employment to millions of workers directly or indirectly.

Due to the astronomical increase of 311% of gas invoices in the last two years, it said that the textiles became non -competitive in the international market, as energy costs represented a large share of the cost of producing goods. “With the highest energy costs in the region, the highest cost of borrowing and taxes, Pakistani textiles will be non -competitive in the international market.”

As a result, the recent increase in the gas invoice will not only prove to be detrimental to the goal of developing the exports set by the Prime Minister to Uraan Pakistan, but would result in the loss of hard -won overseas markets.

APTMA President Southern Zone pointed out that the industry had invested billions of rupees in gas -based electricity production for uninterrupted supplies for their own consumption, as energy distribution companies in Sindh and Balochistan did not have the ability to provide the required Electricity load in the industry.

The government was trying to encourage the use of electricity on the grid instead of the power generated by CPPS, without realizing that politics was not possible in Sindh and Balochistan due to poor capacity and inconsistency in the supply of electricity to the network.