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In this picture taken on July 20, 2023, a worker operates a machine preparing fabric at the Kohinoor Textile Mills in Lahore. — AFP
#18bn #textile #exports #jeopardy #APTMA #tells
ISLAMABAD: After the implementation of off -grid levy on captive power plants (CPPS), after increasing Rs 791 billion per MMBTU at MMBTU in their gas tariff, textile exports are at risk of $ 18 billion.
In a letter to Prime Minister Shahbaz Sharif on Friday, the All Pakistan Textile Mills Association (APTMA) said that immediate intervention was demanded to save the industry.
The letter provided a path forward to the premiere, which wants to supply gas at RLNG -based price, which has no cross subsidy or levies.
The industry also sought permission to buy 35 % of gas from new gas discoveries under the new amended E&P policy at auction costs under the rules of third party access. The industry also advised the Prime Minister to allow it to import its RLNG directly.
The textile industry is no longer in a position to compete with regional economies like Bangladesh, India, Vietnam and China, as they are providing electricity to their export industry to MM 6-9 per MMBTU and 5-9 cents per unit.
In the last two years, the price of gas for captive power plants has increased from Rs 1100 per MMBTU to Rs 3500 per MMBTU. Now, additional revenue of MMBTURS 791 has been imposed, and has been taken to 4,291/MMBTU (.3 15.38). In the letter, the APTMA questioned the levy of Levy on CPPs, which was absolutely wrong. He argued that even according to the ordinance, this levy comes in the negative RSS556.31 per MMBTU.
If the textile sector is to survive and achieve development, it has to meet its energy needs. The grid is not well positioned to meet the full demand for industrial energy. The power generation, especially harmony, is essential.
The ordinance clearly states that “the levy rate will be increased by five percent immediately and will be increased by 10 percent by July 2025, 15 percent by February 2026 and 20 percent by August 2026.” According to clause 4, the levy rate has been described as a difference between the cost of generating electricity for electricity and generating electricity for the B3 industrial category.
The letter also draws the Prime Minister’s attention to the fact that the Cabinet Committee on Energy’s decision was misrepresented to justify the entire board to end imprisonment.
It allows shared temperatures and power plants that are extremely effective, internationally standard and necessary for continuing climate tax and targets.
At Rs. The letter also said that the CCOE decision was intended to create an ineffective cycle detainees, while effective cocaine units were allowed to continue the supply of gas.
However, this decision is now being misused to justify a blanket approach that ignores the significant performance of co -gion and the benefits of energy protection.
In response to this decision, the industries invested Rs 128 billion in upgrading the high performance facilities.
Identifying the challenges of the infrastructure in the transfer of grid electricity, APTMA says there is not enough electricity and auxiliary infrastructure on the grid.
The Secretary (Power Division) has stated before the Senate Standing Committee for Energy that the disco is currently not in a position to meet the demand for electricity through a prisoner and will need at least 2-3 years. It is also mentioned in Optima that Karachi Electric is issuing notes of irrational/provocative demand. In some cases, industrialists who applied for an increase in the burden were presented with a 3 -year -old bill of Rs 9.5 billion.
“New grid/power supply installation does not require enough physical space, especially in urban manufacturing centers like Karachi.”
