All Pakistan Textile Mills Association (APTMA) has sought help of Prime Minister's Advisor on Commerce, Industries and Production and Investment, Abdul Razak Dawood for resolution of power tariff controversy due to shortsightedness of Power Division.
APTMA has cited Indian newspapers, which state that the Indian Textile Secretary Ravi Kapoor has asked textile industry of India to rally and grab the opportunity created by the shutdown in China. In this connection the Government of India is extending all possible support to the industry to capture as much of the estimated $20 billion market that has opened up as is possible. Bangladesh and Vietnam are similarly gearing up.
The Association in a letter to Commerce Advisor stated that unfortunately in Pakistan, the confidence of the industry and investors has been shattered by the Power Division's move to impose additional cost/ surcharges over and above the all-inclusive 7.5 cents/ kWh approved by the ECC. Further clarification that the 7.5 cents/ kWh was all inclusive was given on February 8, 2019 and March 29, 2019.
According to APTMA, the intent of a regionally competitive energy tariff is being nullified by the Power Division's letter of February 10, 2020 which has resulted in billing these unjustified arrears from January 2019.
Pakistan's textile sector is currently operating at near full capacity and is in need of fresh investments for modernization, expansion and new projects in order to meet enhanced export orders.
As a result of the shortsightedness of the Power Division, expansions and new projects are on hold, and operating companies are expected to go out of business leaving millions of workers directly and indirectly out of work. This will surely cause civil unrest due to sharp increase in unemployment.
"If the Power Division's ill-advised about turn on the matter of all-inclusive 7.5 cents/ kWh electricity tariff for export sectors in not corrected, Pakistan will not only loose this once in a lifetime opportunity for enhancing exports but also head towards premature deindustrialization, massive unemployment, precipitous fall in exports," said the textile sector.
APTMA has sought the assistance of Abdul Razak Dawood in correcting grave error being enacted, hoping that he would raise his voice to correct the injustice being meted out to exporters.
"We as the industry commit to rapidly increase exports and capacities to meet the enhanced export orders and capture as much of the opportunity as possible," said, Shahid Sattar, Executive Director APTMA.
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