APTMA’s letter to Prime Minister: Delay in RECT notification to cause 30% more exports loss

ISLAMABAD: At a time when the US dollar hiked to Rs224 because of the political uncertainty coupled with fast depleting reserves and payment of $150 million for fuel imports, further loss in exports is feared, which will be in addition to the export loss of $1 billion that the textile industry has already experienced in the wake of gas suspension to export sector from July 1 for 15 days.

The further export loss of over 30 per cent is certain as the government has not yet notified the agreed Regionally Competitive Energy Tariff (RECT) with the availability of imported gas at $9 per MMBTU and electricity at Rs9 per unit and more importantly, the industry is getting very little gas and grid electricity with poor quality.

This has been communicated on Tuesday to Prime Minister Shehbaz Sharif in a letter written by APTMA’s Patron-in-Chief Dr Gohar Ejaz. The letter mentions that beyond July 15, 2022, more than 30 per cent of output will be lost due to lower energy supply with the very earl possibility of permanently losing other orders as well as repeat business owing to the order delivery delays.

Following restoration, the industry was provided with 50 mmcfd of gas which only met 30 per cent of the industry’s requirements. The letter also unfolds that mills are not operating optimally owing to insufficient and unreliable supply. “Pakistan’s current foreign currency pressure can only be alleviated by more dollars earned through exports. Due to the energy issues, exports are anticipated to drop significantly both this month and next month.”