APTMA called on Commerce, Energy ministeries and FBR to discuss major challenges

ISLAMABAD: All Pakistan Textile Mills Association (APTMA) called on the Minister of Commerce, Minister of Energy and Members of the Federal Board of Revenue today to discuss major challenges faced by the textile industry.

In their meeting with the Minister of Commerce, APTMA appreciated the Minister for his role in reigning in the exchange rate and controlling volatility.

The Ministers of Commerce, and Energy were made aware of energy issues faced by the industry—specifically high power tariffs of 16 cents/kWh that are currently being charged to the industry, and the uncertainty surrounding the availability and pricing of gas/RLNG.

The Ministers informed members that a solution was close to being found to ensure availability of gas/RLNG for industry, and disparities in pricing were also being addressed.

APTMA expressed appreciation for this. Regarding electricity-related issues faced by the textile industry, an agreeable solution is still pending.

As it stands, the textile industry has an export capacity of $2 billion per month, of which $650 million worth of export industry is closed. If electricity prices for exporters continue to remain high, a growing number of firms will be forced towards closure.

This is evidenced by the 12 percent year on year decline in textile exports for September 2023, while textile exports of our regional competitors, including India, Bangladesh, and Vietnam, continue to increase.

Members of APTMA conveyed to the Ministers that current tariffs are unsustainable and include a cross-subsidy of Rs. 10.85/kWh to non-productive sectors that cannot be exported. Exports need to be made competitive to be able to match prices in the international market.