Punjab units: Textile millers hold sit-in to protest high gas price

Demand uniform gas prices, lower electricity tariff of Rs7 per unit

LAHORE: The All Pakistan Textile Mills Association (Aptma) Punjab Chapter on Tuesday held a token sit-in in front of their offices against the gas price disparity faced by industries in the province, which they said made them uncompetitive even in the domestic market.

Office-bearers of the textile lobbying group will continue to stage the sit-in every week by the time their issues are addressed.

“We are facing a high cost of doing business. Compared with other provinces that are receiving natural gas at cheaper rates, Punjab’s industry is getting re-gasified liquefied natural gas (RLNG) at a higher cost,” said Aptma Central Chairman Aamir Fayyaz.

According to the body, the per-unit cost of electricity should be set at Rs7 per unit for Punjab-based industries whereas the gas price should be uniform across the country.

Aptma also pointed out that the ban on trade with India was hurting local markets. It asked the prime minister to announce a textile package at the earliest to save the industry.



According to the Aptma leadership, textile mills are continuously closing down in Punjab and 70 spinning mills have been shut in the last two years, particularly due to the high cost of doing business that has hit hard around 2 million spindles while rendering 150,000 direct or indirect workers unemployed.

They decried that it was an irony that competitive tariffs for both electricity and RLNG were not part of the expected package.

“Difference in the energy cost is widening day by day within the country and it is also tough for the industry to compete internationally,” said Fayyaz.

“A mill of 25,000 spindles is bearing an additional cost of Rs120 million per annum due to the energy prices in Punjab compared to a mill of the same size in other provinces,” he added.

He said the Punjab government’s growth strategy targeted 15% annual growth in exports, 8% in gross domestic product and investments worth $17 billion by 2018.

“It is high time for the government to enable the Punjab-based textile industry to perform and achieve the goals set by the government,” he added.

Published in The Express Tribune, November 30^th, 2016.

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