Pakistan: mills appeal for government help - sportstextiles: Lea SportsTextiles

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Pakistan: mills appeal for government help

11/03/2024
At a meeting of the southern division of the All Pakistan Textile Mills Association (APTMA), mills and manufacturers warned a lack of gas and a leap in tariffs is making the country uncompetitive.

The association said the increase in gas tariffs was disastrous for the export-oriented textile industry.

The association pointed out that the gas tariff was Rs. 852/MMBTU till 31 December 2022 and was raised to Rs.1100/MMBTU from 1 January 2023, then to Rs. 2400/MMBTU in November 2023 and now raised to Rs. 2750/- MMBTU from 1 February 2024, thus an overall increase of Rs. 1892/MMBTU, or 223%.

APTMA warned 30% of firms in the textiles and apparel sector are running at a reduced capacity. Others are at risk of total closure over the coming weeks due to becoming uncompetitive with India, Bangladesh and Vietnam. 

APTMA demanded the federal government reverse its decision to increase the gas tariff. The meeting further demanded the industry and its power generation be declared a priority in gas supply if the government wants to achieve its target of earning $50 billion in foreign exchange through exports.
 

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