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APTMA forewarns the govt of massive downsizing of 10 million employees

According to APTMA, the suspension of RCET would force the textile sector to cut 10 million jobs in Punjab province.

ISLAMABAD: All Pakistan Textile Mills Association (APTMA) today forewarned the government of massive downsizing of textile workers after the government suspended regionally competitive energy tariff.

The government has decided to suspend RCET for the textile and other exports sectors just because of the IMF’s demand to end subsidies to unlock $1.1 billion next tranche.

According to APTMA, the suspension of RCET would force the textile sector to cut 10 million jobs in Punjab province.

The association said that the export-oriented textile industry would become uncompetitive after abolition of the subsidy on power tariff. Consequently, it will lead to massive jobs cut in the industry.

APMTA had written a letter to the Prime Minister Shehbaz Sharif in which the association said that textile exports have surged 55pc in two years.

Textile exports fetched $19.5 billion in 2021-22 as against $12.5 billion in 2019-20. The association linked this robust growth in its exports to the availability of subsidy on power tariff.

In the current fiscal year, 2022-23, the textile sector targeted $26 billion exports, but this would become impossible in the prevailing situation, association added.

The association has pointed out that the price differential between in Punjab and Sindh is more than 3.65 times. It said that the export-oriented units (EOUs) in Sindh can generate electricity at Rs.11/kWh from gas which they are getting at $4/MMBtu, while Punjab gets gas/RLNG at $9/MMBtu.

Javed Mahmood
Written By

I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.


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