The Association of Pakistani Textile Mills (APTMA) urged Prime Minister Shaybaz Sharif to ensure the gas pricing structure by the market for captive energy users in the textile sector. The association requested gas supplies at liquefied natural gas rates (RLNG) that have been formulated, which are free of crossed costs, excessive gas costs in the gas (UFG), and additional fees.
APTMA has also sought to obtain permission from industry to import liquefied natural gas directly under the third -party access framework to secure competitive energy rates.
According to news reports, in a letter to the Prime Minister, Aptma Kamran Arshad president has highlighted that gas prices for captive power generation have risen from 100100 rupees/MMBTU to 3,500 Rs.
He warned that these increasing costs made fabric exports in Pakistan not competitive, as industries in India, Bangladesh and China secure gas at rates between $ 6 and $ 9 million. With more than $ 18 billion of fabric exports at stake, Aptma emphasized the urgent need for a rational energy pricing framework that is in line with international standards.
The association argued that energy pricing must reflect efficiency and principles in the market rather than distorting support and efficiency. I suggest that the industries that use generation facilities at the third party will be subject to compliance with efficiency standards. Aptma request a two -month window to complete these audits and confirm the condition of the common generation.
APTMA called for reaching 35 % of new local gas discoveries by submitting competitive bids under the third -party access frame to ensure transparency in customization. He stressed that the textile sector should be allowed to import liquefied natural gas independently, noting that the current RLNG offers at $ 9/MMBTU/more competitive than local gas pricing. Industry does not seek tools and clarify the message, but rather a policy that guarantees fair and sustainable energy costs.
The letter criticized the distortion of the Cabinet Committee’s decision for the year 2021 (CCOE), which allowed the continuation of the use of joint heat and energy stations due to its efficiency and compatibility with climate goals.
APTMA noticed that at 3,500 mmbtus, the captive costs range between 14 and 18 cents per kilowth of an hour (KWH), while the network tariff stands at 12 cents/kilowatts an hour, making the newly imposed tax. In addition, he claimed that the tax was wrong, and according to the decree, he should lead to 556.31 RS56.31/MMBTU.
APTMA warned that the national network is not equipped to meet the entire demand for energy in the textile sector, which makes the generation of captive energy, especially the common generation, is necessary for the survival of the industry. He called for a policy that eliminates the artificial burdens and guarantees the decisions of gas pricing to support industrial competitiveness.
The association repeated three main requirements: the gas width at a full RLNG cost without the bimps or cross fees, and the provision of transparent bids to 35 % of local gas discoveries, and the permission of the textile industry to import local gas for local liquefied natural gas directly.
