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Textile industry of Pakistan has strongly rejected government's decision to increase gas and electricity tariff as it would be the last nail on the export-oriented textile industry. Muhammad Yasin Siddik, Central Chairman - All Pakistan Textile Mills Association (APTMA) has said the textile industry which is the major export-oriented industry of Pakistan has been hurt badly due to severe electricity load-shedding when the North based industry is not getting electric supply for 10 hours on a daily basis and is compelled to operate their mills using other more costly sources of energy to fulfil their export commitments resulting in tremendous losses.
He further said the gas and electricity tariff of Pakistan was already highest in the region ie electricity tariff in Pakistan, India, Bangladesh, Sri Lanka and Vietnam were 16.54, 9.91, 9.268, 9.08 and 7.30 US cents/KWh respectively, and any further increase in tariff, Pakistan's exports of textile products become incompatible in the international markets resulting in closure of large number of mills and considerable addition to unemployment in the country as more than 38 percent of labour force in the manufacturing sector is employed in the textile industry. Closure of textile mills would also have negative impact on exports earning as textile sector contribute 55 percent or more in the total exports, he added.
Chairman APTMA further opposed the decision to allow the distribution companies to raise tariff to include theft, pilferage and leakages and pass the burden of the non-payers onto those who were paying their bills honestly. He said it is the duty of the government to check and control transmission and distribution losses whereas the situation on ground was to tackle system inefficiencies by raising tariff and punishing the efficient consumers may lead to wiping out of the industry from the country.-PR

Copyright Business Recorder, 2014

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