The government is showing interest in competitive tariffs

Islamabad:

Power Minister Sardar Awais Ahmad Khan Leghari assured the textile mills that the government would provide support to the sector in its developmental efforts as well as address its concerns.

Speaking to a delegation of All Pakistan Textile Mills Association (Aptma), the minister emphasized the unwavering commitment of the government to provide substantial support to the textile industry.

In this regard, he referred to the ongoing efforts to implement a comprehensive wheeler policy, which was expected to significantly boost Pakistan’s exports.

The minister underlined the government’s keen interest in offering regionally competitive tariffs, specially tailored to the textile industry. This strategic approach is expected to unlock the full potential of the industry, aiming to significantly increase exports up to $2 billion.

Underscoring the urgency of the situation, he reiterated the swift action taken to improve the functioning of electricity distribution companies (DISCOs), with the primary objective of providing immediate relief to the textile sector.

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During the meeting, Aptma officials expressed concern over shrinking textile exports, fueling social issues such as unemployment and poverty.

The textile industry says the industrial energy tariff in Pakistan is currently around 17 cents per kilowatt hour (kWh), more than double the regional average.

The electricity tariff for the textile sector in India is 6 cents/kWh, in Bangladesh 8.6 cents/kWh and in Vietnam 7.2 cents/kWh.

High energy costs are causing a reduction in electricity consumption across the country. In December 2023, total electricity consumption fell by 8-10%, due to the fall in industrial and high household consumption, which contributes the most to the fixed costs borne by the electricity sector.

Similarly, electricity production in November 2023 was down about 9.8% year-on-year, while production in January 2024 was down 2.4% year-on-year.

Published in The Express Tribune, April 4^u2024.

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