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APTMA Chairman rejects hike in power tariff
Oct '11
Chairman All Pakistan Textile Mills Association (APTMA) Mohsin Aziz has rejected electricity tariff hike and two weekly offs in the country, fearing production, exports and job losses with these anti-industry decisions.

Earlier, he said, the government had increased power tariff by 4% under the pretext of equalization surcharge, followed by recent hike of Rs3.04 as fuel adjustment surcharge.

Chairman APTMA said the textile industry was already suffering heavily on account of non-availability of electricity, affecting 30 percent of production capacity.

According to him, both the energy security and affordability are pinching the textile industry hard, as it is not able to transfer the cost and keep operations intact for 364 days a year.

Chairman APTMA said the imposition of fuel adjustment surcharge with retrospective effect is also unacceptable and unjustified for export- oriented textile industry, as the industry has already closed the transactions and it is not possible to readjust them on new tariff. He demanded an immediate review of the decision for the survival of textile industry.

He pointed out that the electricity cost per unit for industry in Pakistan at 10.8 cents/KWH is 19% higher than India at 8.8 cents/KWH. He said the government should bear in mind that the competitiveness would be the key to survive under the Most Favoured Nation (MFN) status being extended to India shortly.

Mohsin said the government should give priority to the textile industry for electricity supply at affordable price. It would enable the textile industry to meet exports and growth targets set by the government for current fiscal year besides earning foreign exchange and creating jobs in the country.

Meanwhile, the Chairman APTMA has also criticized the government for announcing two weekly offs and said that it would result into further economic slowdown in country. He said both the banks and ports should be operational throughout the week in the larger interest of national economy.

All Pakistan Textile Mills Association (APTMA)

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