RLNG supply: PTEA concerned over imposition of distribution losses

Pakistan Textile Exporters Association (PTEA) expressed grave concern over retrospective recovery of distribution losses and cost of RLNG supply to textile sector. Inclusion of such charges in RLNG prices has increased the production cost rendering us unviable within the region, it added.
While ommenting on the prevailing situation, here on Wednesday, PTEA Chairman Ajmal Farooq and Vice Chairman Muhammad Naeem termed recovery of distribution losses at 10.23 percent of the DES (Delivery Ex-Ship) and cost of supply at $0.2638 per MMBTU from RLNG consumers for the retrospective period from December 2015 to September 2016 as negative and demanded to immediately withdraw the decision.
Imposition of distribution losses and cost of supply has served to cripple the industry which is already burdened and at a comparative disadvantage in respect of production costs in the region.
They condemned the government's indifferent attitude towards the Punjab-based textile industry as it is facing a serious blow of non-viability due to the high cost of doing business. Industrial consumers in Sindh are paying Rs 588 per MMBTU for gas supply as Sindh High Court have declared GIDC collection against the constitution; whereas textile industry in Punjab is paying more than Rs 1100 per MMBTU for RLNG including GIDC and other surcharges. They warned that revival of the Punjab-based textile industry would be next to impossible in case the government delayed the solution to the problem of high energy cost.
Ajmal Farooq was of the view that rising cost of doing business over last several years has not only stalled fresh investment in the textile industry but also hampered the export growth and turn over. Continuous decline in exports especially the textile exports is a matter of concern as the exports of textile sector contributed over 55 percent in earning of the total export of the country and any decrease in textile exports indicates decrease in the foreign exchange earning of the country, he said.
He said that Punjab-based textile industry would be unable to compete in domestic and international market in case the declining trend continues with present pace. We have already lost the advantages of GSP Plus facility due to the prevailing situation, he added.
Government should devise a comprehensive strategy to resolve the issue in order to accelerate the industrial pace and also to save livelihood of millions of workers. To revive the ailing textile industry, PTEA urged the economic managers of the country to come forward and support the industry for taking bold decisions to regain the phase of bringing back viability in the textile industry and economic prosperity of the country.