Muhammad Luqman

Pakistan’s textile products can be made more competitive in the offshore markets by slashing the gas and electricity tariffs, as high energy costs coupled with heavy taxation have hindered export growth.

“Uncertain supply and pricey energy have made our textile products less competitive in the international market than the products from other regional countries, especially Bangladesh, India, and Vietnam,” said Rao Abdul Basit, Vice Chairman of All Pakistan Textile Processing Mills Association (APTPMA).

Speaking to Wealth Pakistan, he asked the government to fulfil its promise of providing electricity at 9 U.S. cents (Rs22.98) per unit, as announced by Prime Minister Shehbaz Sharif in October this year, adding that the current rate of around 12 U.S. cents (Rs34) per unit was too expensive for the industry to afford.

The package announced by the prime minister has not been implemented despite a lapse of two months, Rao said. He added that the increased prices of imported raw materials, including chemicals and dyes, had further worsened the situation.

Basit said the worsening situation had caused the closure of dozens of textile processing units in Punjab, especially in Lahore, Gujranwala, and Faisalabad regions. Raza Baqir, Secretary General of APTMA (Punjab Region), also expressed concern over the delay in implementing the prime minister’s energy package.

“Strangely, the prime minister’s announcement to bring the electricity tariff for the industrial sector down to 9 US cents per unit is yet to be implemented,” he said while speaking to Wealth Pakistan. He said the availability of energy at regionally competitive prices could help arrest the declining trend in Pakistan’s textile exports.

Meanwhile, Chairman APTMA Kamran Arshad has also urged the Ministry of Energy (Petroleum Division) to grant a temporary waiver of the levy on gas used for captive power generation for December and January.

In a letter addressed to Federal Minister for Petroleum Ali Pervez Malik, Kamran said, “The temporary waiver will enable the mills to utilize their gas-based captive power plants to maintain essential operations and preserve industrial productivity during this difficult period.”

According to the contents of the letter available with Wealth Pakistan, the APTMA chairman said Pakistan’s industrial sector was facing electricity shortages during the ongoing winter months, primarily due to the heavy fog, which had severely constrained grid power availability in several regions.

During December and January, the electricity supply remains erratic and insufficient to sustain uninterrupted industrial operations. The resulting voltage fluctuations and frequent outages damage sensitive machinery, forcing mills to curtail production and inflicting significant operational losses.

“These disruptions come at a time when the industry is already grappling with widespread strikes, an uncertain business environment, and depressed demand in both domestic and export markets,” he added.

The APTMA chairman also requested that the Federal Minister for Maritime Affairs, Muhammad Junaid Anwar, waive demurrage and detention charges levied on the containers that are stuck at the port and inland depots due to the recent transport strike, to facilitate the continuity of trade and avoid undue financial hardship.

In a letter to the minister, he said the 10-day strike had made it impossible to evacuate consignments from the ports or deliver them to the mills, despite the readiness of importers and exporters to clear their cargo.

The containers destined for upcountry locations, particularly Punjab, have not been moved, causing significant congestion at the ports and increasing the demurrage and detention charges.

Credit: INP-WealthPk