APTMA warns of industry closures if RCET not restored

LAHORE: Chairman All Pakistan Textile Mills Association (APTMA) North Zone Hamid Zaman warned of massive closures and retrenchment of textile workers if the Regionally Competitive Energy Tariff (RCET) of electricity and gas for the export sector is not restored.

Addressing a press conference, he said electricity should be made available to the textile industry at the actual cost of service (excluding cross-subsidy) and a level-playing field should be ensured in the supply of gas to maintain competitiveness across the country and internationally.

Charging electricity tariff of ¢16/kWh after including cross subsidies is highest in the region,” he said and added that electricity tariff in India is ¢8/kWh, ¢10/kWh in Bangladesh and ¢6/kWh in Vietnam.

Chairman North Zone in a recent study of the Pakistan Institute of Development Economics (PIDE) warned of deindustrialization in Punjab as the impact of the withdrawal of RCET would be disastrous in terms of laying off workers, decline in investment, exports share, contraction in profit margin and overall industrial output.

He said the country would face further deterioration in the balance of payment crisis as pulling out of RCET would result in a loss in exports of $10 billion per annum. He said 30 per cent of the Punjab-based textile industry has already closed partially and complete shutdowns are increasing day by day.