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Pakistan mills reject gas allocations

The All Pakistan Textile Mills Association (APTMA) has rejected the gas load management schedule announced by Sui Northern Gas Pipelines Limited (SNGPL) and the Water and Power Development Authority (WAPDA). They have appealed to the government to take stock of the situation and save the largest foreign exchange earning sector from total collapse.

APTMA says the load management schedule announced by SNGPL and WAPDA is not workable as the feasibility of the industry is based on a 24-hour working day whereas the industry based in Punjab is getting energy (both gas and electricity) for only 14 hours a day. Pakistan’s textile industry feels it has become non-competitive following the appreciation of the rupee against the dollar and the hike in gas and electricity rates studded with the additional 45 per cent gas infrastructure development cess.

It says the decision to divert 250 million metric cubic feet of gas a day to government-owned power plants would only increase the circular debt because the energy generated by these inefficient companies would not make any difference due to massive line losses, theft and leakages, which are on the rise with every increase in the tariff. Exporters are unable to deliver orders on time due to the energy shortage and continuation of the new gas and electricity outage plan.