PHMEA concerned at move aimed at hiking power, gas tariffs

FAISALABAD: Further burdens to put export industries under the guise from financial crisis and IMF negotiations will be strongly resisted.

This was stated by Muhammad Amjad Khawaja, Senior Vice Chairman of Pakistan Hosiery Manufacturers and Exporters Association while commenting on the news of increase in electricity and gas rates for the textile sector. He completely rejected the government’s argument that it is providing electricity to the textile sector at subsidized rates.

He said that Fesco’s recovery rate is 99.2 percent while transmission and dispatch losses are negligible, but it is also being burdened by the inefficiency of loss-making distribution companies. He said from Nepra should conduct a forensic audit of all distribution companies, and companies that never receive bills or have high T&D losses should be recovered from the companies.

He further said that the electricity tariff for the textile sector was fixed at 19.99 rupees and the gas rate at 9 cents and the export units are exporting at the same rate by determining their cost. If it is increased, we will lose our competitiveness in global markets. He said that the extraordinary increase in the prices of imported raw materials used in exports is already having a negative impact on exports.

He said that on the contrary, the growth rate of exports of Bangladesh and Vietnam is positive up to 25%, while the growth rate of Pakistan is negative.

He said that if the government takes such a decision under the pressure of the IMF, the export sector will be forced to close down its factories, which will lead to unemployment and consequently the law and order situation will take a dire shape.

Copyright Business Recorder, 2023