LAHORE - All Pakistan Mills Association
(APTMA) Chairman Aamir Fayyaz has demanded a domestically equal and
regionally competitive energy price to revive $4 billion closed capacity.“Unless
the government ensures an immediate restoration of the viability, the textile
industry would be unable to compete and deliver for the economy,” he stressed.
He deplored the government''s inaction to control the energy price for the
industry, particularly for the Punjab-based textile mills, which is hurting the
viability of the industry.
He pointed out the Oil and Gas Regulatory Authority (OGRA) has announced
provisional LNG price at $10.79 per MMBTU, which means the LNG would cost at
Rs1080 per MMBTU to the textile units in Punjab as against Rs488 per MMBTU in
other provinces.He recalled that high energy price has already made redundant
35 percent of the existing capacity, predominantly in Punjab and a likely
further closure is imminent if energy price is not addressed on priority.
Furthermore, he added, a fresh
investment of $7 billion is being envisaged by the industry under a long term
vision provided the enablers are well in place.He said the government should
ensure a single gas price of Rs600 per MMBTU across the country, as the
existing difference in price for the mills in Punjab versus the rest of the
country is unbearable.Similarly, the availability of electricity should be
ensured at Rs7 per kWh without surcharge, which is a regionally competitive
energy price.
He
has appealed to Prime Minister Shahid Khaqan Abbasi and Chief Minister Punjab
Shahbaz Sharif to ensure single gas price across the country that should also
be regionally competitive.He said the earlier announcement of competitive
energy price and other measures taken by the Federal Textile Board should be
formalized as a long term policy for the textile industry increase export for
narrowing the trade deficit.
Source: Pakistan Tribune, Pakistan Thursday, 11 January 2018