LAHORE: Pakistan’s textile industry teeters on the edge of collapse as skyrocketing electricity and gas prices threaten to devastate the sector. The All Pakistan Textile Processing Mills Association (APTPMA) has issued a dire warning, citing unbearable costs, reduced productivity, and lost competitiveness in global markets.
Chairman Muhammad Pervez Lala slams government policies, prioritizing Independent Power Producers over industry needs, and demands urgent relief from crippling energy bills.
In a press statement, Pervez Lala warned that the industry is on the brink of collapse due to the unbearable cost of doing business, reduced productivity, and loss of competitiveness in domestic and international markets.
Lala highlighted the energy crisis as the most significant hindrance to the industry’s growth, with electricity and gas prices skyrocketing. He emphasized that the Regional Competitive Energy Tariff (RCET) was withdrawn despite government assurances, further exacerbating the situation.
The APTPMA chief pointed out that Pakistan’s textile industry faces fierce competition from countries like Bangladesh, Vietnam, and India, and that expensive utilities and inadequate investment are hindering its ability to compete.
Lala criticized the government for prioritizing Independent Power Producers (IPPs) over the industry, citing the massive payments made to IPPs without generating electricity. He demanded relief for industrialists, businesses, and the public from the heavy electricity bills.
Lala highlighted other major issues, including high interest rates (19.5%), shifting of Final Tax Regime (FTR) to Normal Tax Regime (NTR), Non-reduction of customs duties on import of dyes & chemicals.
Lala concluded by cautioning that the textile processing industry’s challenges have worsened due to increasing energy prices and non-reduction of customs duties, emphasizing the need for reduction of energy prices to revive the industry, exports, and the economy.
Copyright Business Recorder, 2024
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