PESHAWAR: Chairman of Khyber Pakhtunkhwa Textile Mills Association (KPTMA) Sikandar Kuli Khan Khattak has expressed concern over the recent increase in the gas prices for captive power industrial plants, saying the step has threaten the very operation of the remaining textile mills in the province.
In a statement issued here on Tuesday, he said that nearly 75% of mills have already ceased operations due to skyrocketing energy costs, and the remaining 25% will follow the suite soon due to this 311% rise in gas prices during the short span of over the last two years, from Rs. 852 to Rs. 3,500.
He said this is the final blow to KP’s textile industry, jeopardizing thousands of jobs and billions of rupees invested in the sector.
The energy crisis has caused Pakistan to lose its share in both international and domestic markets. Pakistan regional competitors are getting energy at 5 to 7 cents, and we are getting it at 13 to 15 cents per unit.
Also, the distortion caused by EFS to exporters, which has domestic producers at a disadvantage as we pay 18% sales tax and exporters are importing duty-free yarn that is available in domestic yarn markets, Khattak added.
Khattak lamented, “we’re no longer talking about exports; rather fighting for survival. Investors are now reluctant to invest in Pakistan and are even moving to other countries due to inconsistent government policies.
Khattak reiterated that the gas prices notified by OGRA were unjust as the province continues to serve as a net exporter of gas and does not rely on RLNG.
He added that unstable electricity supply and high tariffs further exacerbate the situation, damaging machinery and production, while the grid system is not able to provide reliable electricity supply to textile units. “Industrialists in KP face immense challenges, including distance from ports and major markets, making it nearly impossible to operate textile units in the province,” he maintained.
The KPTMA has called on the Federal Government to urgently reverse the gas price hike for CPPs and provide a special relief package for KP’s textile industry. The Provincial Government is also urged to direct PEDO to supply electricity at reduced rates to help save the industry from total collapse.
Copyright Business Recorder, 2025