Appreciating the federal government's Rs 180 billion Export Package, All Pakistan Textile Mills Association (APTMA) has complained that the soaring energy cost is hampering the growth of textile industry that remains unable to pass it on to the international buyers due to severe competitive situation in the region.
"Energy including electricity and gas is a prime factor in the soaring cost of doing business for the textile industry," said Aamir Fayyaz, chairman APTMA, at a press conference at APTMA Karachi office on Tuesday. He said that on the electricity tariff for the textile industry comprised of various types of surcharges alongside system inefficiencies and recovery losses that resulted in an additional cost for the consumers.
"Rupees 3.63 per unit surcharge needed to be waived off immediately for the five exporting sectors," he urged demanding of the government to supply electricity at Rs 7 per unit and ensure a level playing field by introducing one energy price throughout the country.
Chairman APTMA said that so far as the gas supply was concerned, the government was providing it from domestic and imported sources with two different tariffs. "The domestic supply is available at Rs 600 per MMBTU plus Rs 200 per MMBTU against GIDC whereas the imported supply at Rs 950 per MMBTU," he said, adding that the textile mills remain heavily dependent on the imported gas supply that means they are bereft of a level playing field within the country. "Government should introduce weighted average price of gas both for domestic and imported supplies to encourage new investment in the textile industry," he urged.
Chairman APTMA has demanded availability of gas at Rs 600 per MMBTU to the textile industry, particularly to those located in the province of Punjab to bring down the cost of doing business in real terms. He said that the textile industry could only be benefited from the China-Pakistan Economic Corridor in case the government ensures a level playing field to compete domestically as well as regionally. He expressed hope that rationalization of energy tariff would revive the penitential of export capacity and help boost exports volume and worth.