PTEA concerned over gas tariff raise for textile sector

FAISALABAD: Pattern Chief of Pakistan Textile Exporters Association (PTEA) Khurram Mukhtar expressed deep concerns over the increase in gas tariffs for captive power plants, calling it a direct blow to the export competitiveness of textile exporters.

He stated that despite receiving a positive response from global buyers at the world’s largest textile exhibition, in Germany, exporters are troubled by political instability and non-competitive energy tariffs in Pakistan.

Mukhtar criticized the new gas tariff of Rs3500 per MMBTU and the imposition of an 8% UFG (Unaccounted for Gas) charge on the textile sector, deeming it unfair since actual losses in the gas sector are less than 0.5%.

He emphasized that high energy costs, including expensive electricity and gas, have significantly raised production costs, leaving Pakistan’s textile exports less competitive compared to regional countries. He also rejected the implementation of the proposed Grid Transition Levy, labeling it unjustified.

Mukhtar highlighted the importance of the “Combined Heat and Power” process for the textile industry, criticizing its classification under captive power plants as unjust.

He urged for transparent cost allocation, sector-specific policies, and energy reforms to support export growth, warning that failure to address these issues would hinder Pakistan’s economic independence.