APTMA warns of export decline

ISLAMABAD: The textile industry has cautioned the Special Investment Facilitation Council (SIFC) about the likelihood of further declines in exports due to the absence of a financially viable energy source for the industry. It has proposed a set of measures to enhance the competitiveness of textile exports in the global market. It pointed out the lack of a financially viable energy source for the industry to sustain manufacturing and compete internationally. According to a presentation made to the SIFC, textile millers have urged for the removal of cross-subsidies to non-productive sectors of the economy. The textile millers’ body, All Pakistan Textile Mills Association (APTMA), has suggested the operationalisation of the Competitive Trading Bilateral Contracts Market (CTBCM) to enable business-to-business (B2B) power contracts with a Use of System/Wheeling Charge of 1-1.5 cents/kWh, excluding cross-subsidies and stranded costs. This move aims to enable the industry to procure green energy at competitive end-use prices through captive generation from geothermal plants in depleted oil fields, hybrid solar/wind plants, or other green power producers. Additionally, it calls for increasing the cap on solar net-metering for industrial consumers from 1MW to 5MW, facilitating the transition towards net-zero by adding over 3000 MW of clean energy at the point of usage, with no investment or guarantees from the government.