The textile Industry is considering making a legal challenge to the government’s decision to increase gas tariffs, reported a national daily.
Disappointed by the 38.46 percent increase in gas tariff, the All Pakistan Textile Mills Association (APTMA) has decided to contest it before the Lahore High Court.
In a letter to its members, APTMA noted that there has been an increase in the rate of regasified liquified natural gas (RLNG) from $6.5 to $9/ MMBTU for export-oriented sectors.
“Stakes are very high particularly for the industry located in Punjab as continuous gas supply @$ 6.5/ MMBTU to the entire value chain, as approved by the cabinet till June 2022, is the only workable energy source for their viability and competitiveness viz a viz regionally and rest of the country,” the correspondence to the members reads.
The letter further says that after due deliberation the association has decided to contest the hike in gas tariff before the Lahore High Court.
According to a senior member of the association, APTMA was confident about the reversal of the increase in tariff as they had taken up the issue at the highest level. He said that the association has made it clear to the government that the hike in gas prices will be detrimental to the exports of textile.
Last month, calling the price hike a contradiction of the commitment given by the federal government APTMA had rejected the hike in gas prices from $6.5/mmbtu to $9/mmbtu for the export-oriented units. The association contended that the competitive energy tariff provided by the government over the last three years has yielded impressive results.
