Aptma rejects gas price hike for export-oriented units

LAHORE: The All Pakistan Textile Mills Affiliation (Aptma) has rejected the sudden hike in fuel costs from $6.5/mmbtu to $9/mmbtu for the export-oriented items.

Addressing a hurriedly-called press convention on the Aptma Home, affiliation chairman Abdul Rahim Nasir mentioned that this upward revision in fuel tariff is in contradiction of the dedication given by the federal authorities for steady provide of fuel and regasified liquefied pure fuel at $6.5/mmbtu.

Nasir mentioned that the regionally aggressive power tariff supplied by the current authorities during the last three years has yielded excellent outcomes. The trade has delivered to the nation by investing Rs450 billion in equipment for capability enhancement as per the dedication.

This has resulted in a rise of $500 million in exports each month in FY22. However the brand new projected funding of $5 billion, establishing of 100 new vegetation and addition of a minimum of 500,000 new jobs with 90 per cent of them in Punjab would all be jeopardised, he mentioned.

The textile trade’s dedication to extend exports by $7.5 billion by the tip of the fiscal yr 2021/22 over the fiscal yr 2017/18 has change into a actuality., he mentioned, including that the federal government’s visionary, progressive, and pro-export insurance policies have enabled unprecedented textile exports progress. The textile exports have elevated 27 per cent within the first 4 months of the present fiscal yr.

A comparability of fuel tariff within the area with Pakistan in a research performed by the Pakistan Institute of Growth Economics (PIDE) means that fuel to the export-oriented sector is out there at $4.05/mmbtu in Bangladesh and $5.19/mmbtu in India.

Within the textile sector, Nasir mentioned that the element of power prices accounts for round 18 per cent of the ultimate product worth. “A rise of $2.5/mmbtu would end in round a 5 per cent hike within the ultimate value,” he added.

Aptma Northern Zone chairman Hamid Zaman emphasised that the textile trade operates on a really slim margin of three per cent to Four per cent and the current enhance in fuel tariff just for the Punjab trade would render it uncompetitive and unserviceable not solely globally but additionally within the native market. It can result in large-scale closures and resultantly unemployment, Zaman warned.

The tariff enhance just for the Punjab industries can also be towards the precept of promissory estoppel, which protects earlier agreements and contracts.

Aptma Northern Zone senior vice chairman Karman Arshad mentioned that greater than double the fuel worth distinction between Punjab and Sindh would promote parochialism and injury nationwide concord.

Punjab is being rapped and penalised by means of irregular enhance within the fuel tariff, rendering it competing towards different provinces, he mentioned, including {that a} broad gulf between the fuel costs of Punjab and the remainder of the nation would result in nationwide disharmony and jeopardise the sustainability of the textile enterprise in Punjab.

“If the regionally aggressive charges are usually not revived once more, we might be left with no different alternative however to close down the trade,” he mentioned.

“The brand new fuel tariff of $9/mmbtu just isn’t acceptable in any respect. We urge Prime Minister Imran Khan to reverse this new determination of fuel tariff hike, in any other case it will be a decisive blow to the trade,” Arshad advised BOL Information.

Aptma secretary common Raza Baqir was additionally current on the event.

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