‘50% textile firms may shut down in coming weeks’

With over 50% of firms in the textiles and apparel sector at high risk of shutting down over the coming weeks, All Pakistan Textiles Mills Association (APTMA) has called upon the federal government to review the energy rates to make textile exports competitive in the international market. The international competitiveness of Pakistan’s textiles and apparel exports is being continuously eroded by persistent surge in energy prices that are, on average, over twice those in competing countries. Moreover, electricity prices for industrial consumers are hovering at 16.7 cents/kWh and the price of gas is being increased to Rs2,950/MMBtu from Rs2,200/MMBtu at present, marking a notable increase from Rs852/MMBtu just over a year ago. In a letter addressed to Energy Minister Muhammad Ali, APTMA, Secretary General, Shahid Sattar warned that the closure of the textiles and apparel sector will cause widespread unemployment and social unrest. “Production at these energy rates is not financially feasible and the sector’s exports have become stagnant. We’re losing market share to regional economies that have significantly lower energy tariffs like Bangladesh, India and Vietnam,” he said.