Export-oriented sectors: PTEA resents withdrawal of concessional gas tariff

FAISALABAD: Pakistan Textile Exporters Association (PTEA) has flayed the decision of withdrawal of concessional tariff on gas supply to the export-oriented sectors, terming it an anti-export move which will seize the industrialization and export growth.

Quoting the decision, PTEA’s senior leader Sohail Pasha has said that the concessional tariff of $9 per mmbtu has been withdrawn and the export-oriented sectors will be charged at normal industrial tariff with effect from May 1st 2023.

Textile industry is already passing through difficult times as extreme cash flow crunch and high production cost have immensely damaged the export pace and adversely impacted the textile value chain.

Exports are falling consistently both in value and quantities and this move will further add fuel to the fire, he added. This is having adverse impact on the employment and the economy of the country.

Export downfall has been a cause of serious concern for economy and a major setback to industry. This tariff increase decision shall put the textile export industry at halt resulting in massive de-industrialization & unmanageable unemployment.

Textile industry is facing a major crisis as it is rapidly losing credibility and competitiveness in the global market. It is the time to support the export sectors to have long-term sustainability in the balance of payments as it is an important source of foreign exchange.

Government should set its priorities right and accord preferential treatment to boost the exports and generate industrial activities. Only the export sector has the ability to pull country out of crisis and steer it towards economic prosperity.

Expressing disappointment over discontinuation of competitive gas/RLNG price, other Senior PTEA leader Arif Mahmood Qureshi said that textile industry has already lost its viability against the regional competitors as our exports are at a comparative disadvantage in respect of high production costs in the region.

Due to inefficient and unfriendly socio-economic environment, the cost of doing business in Pakistan has escalated enormously due to intermittent raise in the prices of raw materials and production inputs rendering our exports uncompetitive in international market.

Taking advantage, rival countries have creeped into our traditional markets throwing the Pakistani textiles out, he lamented. Textile industry, particularly in Punjab, has become the victim of discriminatory policies as industries in other provinces are using low-priced gas for their industrial needs; whereas the highest revenue-generating Punjab-based industries are compelled to use high-cost RLNG which is injustice.

Terming current gas policy as unsustainable, he stressed for uniform gas tariff across the country through Weighted Average Cost of Gas (WACOG), the only workable solution. Textile industry is the only hope for a revival of country’s economy which is currently jolted by the high cost of doing business.

PTEA urged the Government to take cognizance of serious matter and step up to save precious forex earning sector from disaster as challenges like high cost of doing business is holding this mainstay of economy back from growing up to full potential. Government should restore the competitiveness of the industry by ensuring energy supply at regionally competitive rates.

Copyright Business Recorder, 2023