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Energy tariff rationalization is a must to boost textile exports: Chairman APTMA

The chairman of APTMA (All Pakistan Textile Mills Association), Mr. Aamir Fayyaz said that to boost exports and further investment, rationalization of energy tariff in textile industry is a must.

He delivered his views while addressing a press conference at the APTMA Punjab on Saturday, 4th February 2017. Chairman APTMA Punjab Syed Ali Ahsan, besides the other office bearers, were also present at the occasion.  At the time when the chairman APTMA appreciated the export package of Rs. 180 billion from the federal government, he also pointed the energy costs that are yet hampering the textile industry. Textile industry of Pakistan is the backbone of economy of Pakistan when it comes to talk about exports. However it is not able to pass on the high energy costs to its international buyers in the tough competition in global market.

Chairman APTMA also said that both gas and electricity are a major factor in cost of doing the textile business. Talking about electricity in particular he said that the textile industry tariff is loaded with number of surcharges, inefficiencies of system and the recovery losses. “The government was charging exorbitant tariff to the textile industry that was not possible to be passed on to the international buyers,” he stated. While talking about the gas supply he said that the government was providing it from and imported and domestic sources with two different tariffs. “The domestic supply is available at Rs600 per MMBTU against the imported supply at Rs950 per MMBTU,” he added.

He said that the textile mills heavily dependent on imported gas supply are deprived of a level playing field within the country. “The government should introduce weighted average price of gas both for domestic and imported supplies to encourage new investment in the textile industry,” he emphasized.

The chairman also demanded for the availability of the electricity at the price rate of 7Pkr per unit and that of gas at 600Pkr per MMBTU, inclusive of the GIDC to the textile industry, across the country.  While addressing the attendees he also said that the textile industry of Pakistan will surely be benefited by the Pak China Economic Corridor only if the government ensures a level playing field to compete regionally and domestically.

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