Withdrawal of RCET has hit national export drive: APTPMA

LAHORE: Withdrawal of Regionally Competitive Energy Price (RCET) on energy tariff (gas and electricity) to export oriented textile industry has adversely affected our national export drive whereas our export-oriented textile processing sector is already confronted with a host of problems which has increased cost of doing business, reduced productivity and rendered our products uncompetitive in the domestic and international export market.

These grave apprehensions were envisaged by Muhammad Pervez Lala, Chairman All Pakistan Textile Processing Mills Association (APTPMA), through a press statement issued by APTPMA here on Friday.

The Chairman APTPMA said that according to recommendations and assurance given to the textile sectors by the Govt that Regional Competitive Energy Tariff (Electricity & Gas) would be continued till 30th June 2023; but govt has withdrew RCET electricity tariff w.e.f. 01st March 2023.

Keeping in view of commitments and assurance given by the Govt regarding continuation of electricity tariff @ 19.99 kWh all-inclusive to the five export oriented sectors including the textile sector up to 30th June 2023, textile exporters have booked various orders on the contemplation of said zero rated industrial package (ZRI) with their foreign buyers accordingly, but abrupt withdrawal of ZRI package has constrained them to cancel their export orders or face huge loss due to massive increase of cost of energy prices.

To get relief, our textile processing units appealed High Courts, but according to recent orders of the Lahore High Court, our members/ petitioners are directed to pay the electricity bills retrospectively @ normal prices.

Copyright Business Recorder, 2023