ISLAMABAD: The Punjab-based textile industry has reportedly decided to resist Minister for Energy’s move to charge over 100 per cent higher gas/RLNG rates from its units as compared to Karachi-based industry, well informed industry sources told Business Recorder.
The Ministry of Energy headed by Hammad Azhar has proposed $ 9/ MMBTU for gas/ RLNG from Punjab-based industry, while continuing to charge $ 4.47/ MMBTU from Sindh-based industry.
The Punjab-based textile industry, sources said, has also approached the Prime Minister to block the proposal tailored by Hammad Azhar.
“This is a highly discriminatory act and it would lead to closure of mills and create large-scale unemployment in Punjab, as exceptional progress, job creation and export led growth is being jeopardized and the government’s crowning achievement nullified,” said industry sources.
There will be no disruption in gas supply, SNGPL chief tells APTMA delegation
Textile exports increased by 27 percent in the first 4 months of the current fiscal year, up by $ 7.5 billion in FY22 from 2017-18. This is by any standards a phenomenal achievement, the industry argues, and further claims that it has delivered to the nation by investing Rs450billion in machinery for capacity enhancement for export-led growth. This has resulted in an increase of $500 million in exports every month in FY22 so far. About 100 new textile units are being set up across Pakistan, 90 percent of them in Punjab creating a lot of jobs.
Due to rapid expansion in textiles more than 80 percent of mills now rely on both gas & electricity to fulfill their energy requirements. Denial, shortage or unrealistic pricing of any energy source will make them uncompetitive and curtail operations significantly. “Industry stands with government to reduce gas/ RLNG usage. We undertake to reduce gas/ RLNG off-take significantly if electricity tariff is reverted to 7.5 cents/ kwh,” the sources said, suggesting that RFO-based plants can be used to generate electricity to reduce RLNG/gas requirement.
The Punjab-based industry has also written a letter to Prime Minister’s Advisor on Commerce and Textile, Abdul Razak Dawood, requesting him to ensure proper gas/ RLNG pressure and availability across the country and to ensure the value chain for maintaining production and exports, as the bulk of industry after expansion does not have sufficient energy supplies through either gas/ RLNG or electricity connections.
Comments
Comments are closed.