ISLAMABAD        -         The government has reiterated to continue with the provision of electricity to the textile industry at the concessional rate of 7.5 cents per unit; however they will be liable to quarterly adjustments and other chargeable rates.

Any other charge over and above 7.5 cents per unit is being charged from the textile industry as per the decision of the Supreme Court of Pakistan, official spokesman of the Ministry of Energy (Power Division) said.

He said that the concession has not been withdrawn and it is still being provided to the textile industry and government is charging 7.5 cents per unit to the industry under the announced scheme.

The charges of electricity which were other than the committed 7.5 cents rate are chargeable, the spokesman said. Other charges being charged are also held by the Supreme Court in its decision, the spokesman added.

On the other hand, All Pakistan Textile Mills Association (APTMA) is of the view that the government has imposed various surcharges after the withdrawal of zero-rating alongside GST and income tax. Besides, the textile industry was further burdened with Quarterly Tariff Adjustments (QTA) and introduction of the Additional Distribution Surcharge to the industry retrospectively from the beginning of the current fiscal 2019-20.

The addition of extra charges in the tariff has further burdened the industry with an additional 30 to 35 percent on account of electricity charges. The industry is demanding of the government the electricity supply at the committed tariff of 7.5 cents per unit to the export-oriented industry with no other charges added to it.

As per the APTA view point, the government’s commitment of supplying electricity at 7.5 cents per unit led to an increase in textile exports.

Similarly, the garment exports of the country also increased by almost 35 percent during first two quarters of the current fiscal.

An official source in the Ministry of Energy has termed the demand by APTMA totally unjustified and said that domestic and other commercial consumers are paying much higher rates of electricity than the textile industry.