Gas supply: Tariff increase detrimental, says APTMA

Says the 64% hike, which takes effect from April 1, would cripple the entire value chain of the textile industry

KARACHI:

Irked by the tariff increase, the All Pakistan Textile Mills Association (Aptma) said that the 64% hike, which takes effect from April 1, would cripple the entire value chain of the textile industry.

“This increase will erode the viability of the industry. It cannot pass on this increase to its customers, as it has to compete in the international export markets,” Aptma Sindh-Balochistan Region Chairman Tariq Saud said during a press conference at its head office.

He said that the over-valued Pakistani rupee is making local products uncompetitive in the export markets, consequently damaging the textile industry.

Instead of increasing gas tariffs, the government should come up with workable solutions and bring the energy cost at par with competitors in the region, the industrialists urged.

The office bearers said that sizeable quantities of basic textile from regional competitors have started making inroads into domestic market, which is badly hitting the interests of the local industry.

Published in The Express Tribune, March 13^th, 2015.

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