ISLAMABAD:
Minister of Power Sardar Awais Ahmad Khan Leghari has assured textile millers that the government will provide support to the sector in its growth efforts as well as address its concerns.
Talking to a delegation of the All Pakistan Textile Mills Association (Aptma), the minister emphasised the government’s unwavering commitment to providing substantial support to the textile industry.
In this regard, he mentioned the ongoing efforts to implement a comprehensive wheeling policy, which was expected to significantly boost Pakistan’s exports.
The minister underscored the government’s keen interest in offering regionally competitive tariffs, specifically tailoured for the textile sector. This strategic approach is expected to unlock the sector’s full potential, targeting a substantial increase in exports up to $2 billion.
Highlighting the urgency of the situation, he reiterated the swift action taken to improve the functioning of power distribution companies (DISCOs), with the primary goal of providing immediate relief to the textile sector.
Read Power tariffs raised under IMF deal: PM
During the meeting, Aptma officials expressed concern over the dwindling textile exports, which sparked social issues such as unemployment and poverty.
Textile sector says that the industrial power tariff in Pakistan is currently around 17 cents per kilowatt-hour (kWh), which is more than twice the regional average.
Electricity tariff for the textile sector in India stands at 6 cents/kWh, Bangladesh 8.6 cents/kWh and Vietnam 7.2 cents/kWh.
High energy costs are causing a decline in electricity consumption across the country. In December 2023, total power consumption dropped 8-10%, driven by a dip in industrial and high-end domestic consumption, which is the largest contributor to the fixed cost borne by the power sector.
Similarly, power generation in November 2023 went down around 9.8% year-on-year while generation in January 2024 fell 2.4% year-on-year.
Published in The Express Tribune, April 4th, 2024.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
