The government of Pakistan has increased the rate of regasified liquefied natural gas (RLNG) from $6.5 to / MMBTU for export-oriented sectors.
Disappointed at the massive jump in gas prices, the textile industry is considering a legal challenge to an upward government revision in gas tariffs.
All Pakistan Textile Mills Association (APTMA) has decided to contest the 38.46% increase in gas tariff before the Lahore High Court.
The government had decided to increase gas tariff for textile units by 38.
46 percent to $9/mmBtu from the present $6.5 from November 15, 2021, for three and half months, which was dubbed by industry as a “setback for export-oriented units.
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Earlier, Abdul Rahim Nasir, Chairman of APTMA, said that the present government’s visionary, progressive, and pro-export policies had enabled unprecedented textile export growth. The textile exports have increased by 27% in the first four months of the current fiscal year. However, an increase of $2.5/mmbtu would result in around a 5% hike in the final cost.
APTMA representative said, “Stakes are very high particularly for the industry located in Punjab as continuous gas supply @$ 6.5/ MMBTU to the entire value chain, as approved by the cabinet till June, 2022, is the only workable energy source for their viability and competitiveness viz a viz regionally and rest of the country.
Under these circumstances, after due deliberation, APTMA has decided to contest the increase in gas tariff before the Lahore High Court.”
