APTMA seeks winter waiver on CPP levy amid power shortages

APTMA

The All Pakistan Textile Mills Association (APTMA) has urged the federal government to grant a temporary waiver on the levy imposed on Captive Power Plants (CPPs) during the winter season, citing severe electricity shortages that are disrupting industrial operations across the country.

In a formal letter addressed to Minister for Power Sardar Awais Ahmad Khan Leghari, APTMA Chairman Kamran Arshad highlighted that persistent power supply disruptions during December and January have significantly affected the textile industry. He noted that heavy fog during the winter months has further constrained grid electricity availability in several industrial regions.

According to APTMA, electricity supply during this period remains erratic and insufficient to sustain uninterrupted production. Frequent outages and voltage fluctuations are not only halting operations but also causing damage to sensitive and high-value machinery. As a result, textile mills are being forced to reduce production, leading to substantial financial losses.

The association pointed out that these power-related challenges come at a particularly difficult time for the textile sector, which is already facing labor unrest, an uncertain business environment, and weakened demand in both domestic and international markets. Export-oriented mills, in particular, risk missing shipment deadlines, potentially undermining Pakistan’s export commitments.

To address these challenges, APTMA has requested a temporary waiver of the levy on gas used for captive power generation during the months of December and January. The association emphasized that such relief would allow mills to operate their gas-based captive power plants, ensuring continuity of essential operations during the peak winter disruption period.

“This short-term facilitation will help mitigate damage to industrial infrastructure, preserve production capacity, and ensure continuity of employment and export orders,” Kamran Arshad stated.

APTMA stressed that timely government intervention is critical to safeguarding the textile sector, which remains a key contributor to Pakistan’s exports, employment, and overall economic stability.