Lahore, July 23, 2024 – The All Pakistan Textile Mills Association (APTMA) has called upon the government to urgently reconsider its agreements with Independent Power Producers (IPPs) to safeguard the textile industry, particularly its export-oriented segment.
Speaking at a press conference held at the APTMA office, Chairman (North) Kamran Arshad emphasized the critical need for immediate action. He highlighted the detrimental impact of current IPP agreements on the industry’s competitiveness and sustainability.
“We stand united in our plea for revision,” stated Kamran Arshad, acknowledging the efforts of APTMA Patron-in-Chief Dr. Gohar Ejaz in championing the issue both personally and through the Federation of Chambers of Commerce and Industry (FPCCI).
Arshad underscored that the textile sector had experienced a notable decline in exports, citing a four percent drop in June 2024 compared to the same period last year. He attributed this downturn partly to the absence of a Regionally Competitive Energy Tariff (RCET), which stands at 9 cents/kWh. Currently, due to existing IPP agreements, the industry is burdened with a higher tariff of 15.5 cents/kWh.
“The situation is dire, and without prompt intervention, our exports face further jeopardy,” warned Arshad, emphasizing that APTMA members were not seeking subsidies but rather a level playing field in energy costs.
He pointed out that data from the National Electric Power Regulatory Authority (NEPRA) indicated that several IPPs were receiving substantial payments monthly despite not supplying electricity to consumers.
“Now is the opportune moment to reconsider these agreements,” urged Arshad, advocating for the adoption of RCET to bolster the textile industry’s competitiveness on the global stage.
Muhammad Raza Baqir, Secretary General of APTMA, and Tahir Basharat Cheema, Energy Advisor to APTMA, echoed Arshad’s sentiments, emphasizing the urgent need for policy reforms to support industrial growth and export potential.
The call for revision comes amidst growing concerns over Pakistan’s economic landscape, where the textile sector plays a pivotal role. APTMA’s appeal seeks to ensure a sustainable and conducive environment for textile manufacturers, facilitating increased productivity and international competitiveness.
As discussions continue between industry representatives and government stakeholders, the outcome remains critical for shaping the future trajectory of Pakistan’s textile exports. The transparency and effectiveness of policy decisions in addressing industry concerns will be pivotal in fostering a resilient economic framework.
With stakeholders on both sides engaged in dialogue, the spotlight remains on finding equitable solutions that support industrial growth while balancing economic considerations. The outcomes of these deliberations are anticipated to have far-reaching implications for Pakistan’s economic resilience and industrial development in the years ahead.