Pakistan Textile Exporters Association (PTEA) has rejected the Government withdrawal of concessional tariff on gas supply to the export-oriented sectors, saying the decision will badly impact the exports and will impede any efforts to revive the industry.
Responding to the decision, PTEA’s senior leader Sohail Pasha has said that the removal of $9 per MMBtu of concessional will take effect from May 1st, 2023. He noted that textile exports have been declining for the past few months this decision will only worsen the impact on employment and the economy at large.
The textile industry is extremely under pressure with a shortage of raw materials, uncompetitive input prices in the region, already high energy tariffs, and a lack of cash flow. The latest tariff increase can potentially put the textile export industry at a halt and fuel massive de-industrialization & unemployment.
The government needs to prioritize exports to boost industries to successfully navigate Pakistan’s economy through these challenging times.
Another Senior PTEA leader Arif Mahmood Qureshi also addressed the concerns noting that the textile industry has already lost its viability against the regional competitors with a dire socio-economic environment, the rising cost of doing business, and the hike in the prices of raw materials, all of which has ultimately domestic products uncompetitive in the international market.
Regional competitors have captured Pakistan’s traditional markets, he said. The textile industry, particularly in Punjab is being victimized irrationally by forcing it to use high-priced LNG while industries in other provinces are using low-priced gas for their industrial needs, despite being the highest revenue-generating province.
He urged uniform gas tariffs across the country terming Weighted Average Cost of Gas (WACOG) as the only workable solution to make exports regionally competitive. PTEA noted that the textile sector is Pakistan’s only hope towards prosperity so Government immediately needs to step up the efforts to save the industry from disaster.
