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Tuesday, April 16, 2024

APTMA requests govt. to continue RCET tariff policy to sustain rising textile exports

Gohar Ejaz, Patron in Chief, APTMA has written to the Imran Khan government requesting that Regionally Competitive Energy Tariffs (RCET) must continue as sustainable export-led growth is dependant on the continuation of the RCET policy.

The Patron-in-Chief All Pakistan Textile Mills Association (APTMA) Mr. Gohar Ejaz has requested the government for continuation of Regionally Competitive Tariffs of $ 6.5 / Metric Million British Thermal Unit (MMBtu) of Gas/RLNG and 7.5 cents / kWh of Electricity. On our request Imran Khan’s government reposed its confidence in the Textile Industry, providing the government’s complete support.

As a result, Pakistan’s Textile Exports foresees to increase considerably i.e., $16.5 Billion during FY21 in comparison to the exports in FY18 which were $13.5 billion and will continue to grow up to $20Bn in June 2022. Making a total of $27 billion in exports in June 2021 and $30 billion in June 2022.

Regionally Competitive Energy Tariffs policy proposed by the Pakistan Institute of Development Economics (PIDE) has played a vital role in the current year’s exports and is critical to sustaining enhanced exports, employment, and bring in new investment.

Read More: Why Regionally Competitive Energy tariffs are needed for textile sector!

The importance of RCET

The textile industry has capitalized on the given incentives to help the government achieve the ultimate aim of export maximization, job creation, and the realization of economic prosperity.

Pakistan’s export industries (including textiles) witnessed an exceptional growth of 9% in 9 months of Fiscal Year 2021. The increase in export demonstrates the competitiveness of Pakistan’s exports, when inputs are provided at regionally competitive prices, exports were achieved despite an unfavorable international environment.

The industrial electricity tariff of other textile exporting countries is much lower than Pakistan making us uncompetitive in the increasing market competition. The objective of the Pakistani textile industry to become an export “powerhouse” cannot be achieved until power tariffs are revised to a competitive and stable level.

Industry fears that the Power Sector will not be able to deliver on a sustained stable and competitive basis which will negatively impact market sentiments. Competition is the key principle for the development and expansion of the industrial market.

Read More: Pakistan’s textile exports grow 30.4pc in March 2021