The All Pakistan Textile Mills Association (APTMA) has urged Prime Minister Shehbaz Sharif to revise the gas pricing policy for the textile sector, highlighting the need for market-based rates to maintain competitiveness in global exports. In a letter, APTMA Chairman Kamran Arshad pointed out that gas prices for captive power generation have surged from Rs1,100/MMBtu to Rs3,500/MMBtu in the past two years, with an additional levy of Rs791/MMBtu, bringing the total to Rs4,291/MMBtu ($15.38). This sharp rise has made Pakistan’s textile exports uncompetitive compared to countries like India, Bangladesh, and China, where gas is priced between $6 and $9/MMBtu.
The association stressed that the textile sector, which generates over $18 billion in exports, urgently needs a more rational energy pricing framework aligned with global standards. APTMA has requested gas supply at ring-fenced Re-gasified Liquefied Natural Gas (RLNG) rates, free from cross-subsidies, excessive unaccounted-for gas (UFG) costs, and additional levies. Furthermore, they seek permission to directly import LNG under the Third-Party Access framework to secure more competitive energy rates.
Additionally, APTMA called for transparent bidding for 35% of new domestic gas discoveries, allowing the textile industry to participate. They argued that current RLNG rates at $9/MMBtu are much more competitive than domestic gas prices. The association also proposed third-party audits for industries using cogeneration facilities to ensure energy efficiency.
With the textile sector’s survival at risk due to these high energy costs, APTMA emphasized the need for immediate action to ensure the industry remains globally competitive.
