LAHORE - The All Pakistan Textile Mills Association Chairman Tariq Saud has said the textile industry is disappointed over linking of Rs3 per unit reduction in industry tariff with fuel price adjustment.

He said the textile industry had booked export orders based on Rs9 per unit electricity tariff after the announcement of Rs3 per unit tariff reduction by the prime minister of Pakistan.

“But the linking of reduction in industry electricity tariff with the monthly fuel price adjustment will nullify the spirit of the announcement, as neither the increase nor the decrease in fuel price adjustment could be considered a part of the power sector revenues,” he said. He said it is quite ironic that the cost of electricity is Rs12 per unit today like it was earlier because of the constant burden of surcharges.

It would push the textile industry further into crisis with closing down capacities and falling exports and no more undertaking of fresh investment in the sector, he said.

“The textile industry is witnessing 30 percent capacity closure amidst 30 percent drop in exports today,” he added.

He said the government would not be able to benefit from the GSP plus facility without reducing the electricity cost.

He also said the industry was expecting the electricity bill for the month January at a cost of Rs9 per unit. But it seems impossible and the industry would be paying Rs12 for each unit consumed during the month of January with the constant burden of surcharges.

Chairman APTMA said revival of the closed capacity and bringing back the industry viability is only possible if the government matches with the regional electricity tariff, i.e. 9 cent per unit.

He has appealed to the prime minister for issuing direction to the ministry of water and power for  Rs3 per unit reduction from the notified surcharges, imposed over and above the NEPRA determination.