The All Pakistan Textile Mills Association (APTMA) has warned the government that large layoffs would occur shortly, resulting in severe unemployment for more than 10 million people in Punjab.
APTMA has asked the government in a letter to the premier to establish a fair playing field throughout the nation by imposing a consistent gas price of $7 per MMBtu for the export sector across the country.
It has also asked the government to keep the export sector in the country at Rs. 19.99 per kWh in order to preserve international competitiveness.
The group has also demanded that gas delivery to captive power plants in the export-oriented industry be given first consideration.
According to APTMA, the government’s decision to suspend regionally competitive energy pricing (RCET) of electricity for export-oriented units (EOUs) throughout Pakistan would make the textile sector, particularly in Punjab, uncompetitive with the rest of the nation and the region.
It was emphasised that this is especially detrimental to Punjab-based enterprises. The price difference between effective power pricing in Punjab and Sindh is greater than 3.65 times, since EOUs in Sindh can produce electricity for Rs. 11 per kWh from gas that costs $4 per MMBtu, whilst Punjab pays $9 per MMBtu for gas.