The All Pakistan Textile Mills Association (APTMA) has sounded the alarm over the potential widespread closure of industrial units in the coming months, citing soaring energy prices as the primary cause.
In a letter directed to the Ministry of Energy, Ministry of Commerce, and Special Investment Facilitation Council, the APTMA underscored that numerous industries are on the verge of closure due to the prohibitive tariffs on electricity and gas.
Expressing deep concern, the APTMA warned that the imminent closure of many industries could result in a significant spike in unemployment across the country. The letter emphasized the adverse impact on Pakistan’s export market share and the overall decline of the industry, citing the current cost of power supply to the industry at Rs 50 per unit.
The APTMA highlighted that the per-unit cost of electricity is 18.5 cents per kilowatt higher than in neighboring countries. Additionally, gas and regasified liquefied natural gas (RLNG) prices for the textile sector have witnessed a doubling effect. The association lamented that gas prices for industries increased by 250 percent in the previous year.
This development occurs against the backdrop of the Power Division’s decision, announced on January 16, to revise electricity tariffs for industrial consumers. The move is a response to the escalating circular debt, which had reached an alarming Rs 5.73 trillion.
During a meeting of the Senate Standing Committee on Energy, the Secretary of the Power Division outlined plans to reduce the electricity tariff for industrial consumers from 14 cents to 9 cents per unit. He emphasized the necessity of tariff revisions to support the industrial sector, recognizing the importance of a conducive environment for businesses.
As the APTMA’s letter sheds light on the imminent challenges faced by industries, it underscores the urgency for comprehensive measures to address the energy pricing concerns and safeguard the stability of the industrial sector, a vital component of Pakistan’s economic landscape.
