Textile body demands electricity at flat rate

Says new investment in jeopardy after increase in power tariff

LAHORE: The All Pakistan Textile Mills Association (Aptma) leadership has demanded uninterrupted electricity supply at the committed tariff of 7.5 cents per kilowatt-hour (kWh) to the export-oriented industry.

At a press conference at the Aptma Punjab office on Friday, Association's Central Chairman Dr Amanullah Kassim Machiara said the industry was planning fresh investment despite the prevailing liquidity crunch caused by the stuck tax refund claims.

He pointed out that an increase in energy tariffs following the withdrawal of the facility of electricity supply at a flat rate of 7.5 cents had sparked panic within the industry.

Aptma Punjab Chairman Adil Bashir urged the government to fulfill its commitment of providing energy at a regionally competitive cost, ie at 7.5 cents per kWh.

"Government's commitment to provide electricity at 7.5 cents led to an increase in textile exports whereas garment exports alone registered a rise of 35% in the past four months," he pointed out.

"However, the government has imposed various surcharges following the withdrawal of zero-rating status including general sales tax and income tax." Besides these, the industry has also been burdened with quarterly tariff adjustments in addition to the additional distribution surcharge effective July 1, 2019.

Owing to the government's export-friendly policies, the industry had invited fresh investment, which was in the pipeline, he revealed. "Only the assurance of constant energy supply in the remaining period will make the industry pour new investment, which is currently in doldrums," he cautioned.

Bashir requested Prime Minister Imran Khan to intervene immediately and restore the confidence of exporters eager to invest in new projects. 

Published in The Express Tribune, November 30^th, 2019.

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