Power tariff hike irks Pakistan textile bodies

04 Oct '13

2 min read

The textile manufacturers and exporters associations in Pakistan have expressed their displeasure over the recent hike in power tariff, and are set to represent the industry case regarding the tariff hike before the Government.

As of September 1, 2013, power tariff for the textile sector has been hiked by 61 percent from the existing Pk Rs. 9.18 kilowatt per hour (KWh) to Pk Rs. 14.18 KWh, while the actual power generation cost comes to around Pk Rs. 7.61 per KWh.

The All Pakistan Textile Mills Association (APTMA) Punjab has stated that the power hike would deprive the Captive Power Plants (CPPs) of gas supply and also substantially hike the cost of doing business.

APTMA noted that CPPs use around 800 million cubic feet per day (MMCFD) gas to produce around 3,200 MW power and even the least efficient CPPs operate at over 40 percent capacity, while the net efficiency of the Independent Power Plants (IPPs) is only 24 percent.

During the Annual General Meeting of APTMA Punjab, the office bearers of the association were mandated to raise the issue before concerned Government officials.

Meanwhile, the Pakistan Textile Exporters Association (PTEA) has also voiced its concern in this relation stating that the abrupt hike would badly hit the already struggling export-oriented industry.

PTEA Vice Chairman Adil Tahir said it would only inflate the cost of doing business for textile industry in Pakistan, and may even result in closure of several units which fail to bear the rising costs, leading to increased redundancy.

Cost of production in Pakistan is already high, because of which its goods are losing competitiveness in the global market, and the recent tariff hike has come as a fresh blow to the textile industry, he added.

The APTMA Punjab and PTEA have urged the Government to initiate steps to check the tariff hike and ensure sustained business environment for the textile sector.

Fibre2fashion News Desk - India

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