APTMA rejects power tariff hike

LAHORE: The All Pakistan Textile Mills Association (APTMA) has expressed concern over the increase in power tariff to 9 from 7.5/kWh, which would play havoc with the Small and Medium Enterprises (SME) in the textile value chain, a statement said on Wednesday.

The APTMA members said the year 2020 had already been challenging both for the government and the industry due to the Covid-19 pandemic, which plunged the global economy to the worst recession.

The industry was expecting continuity of 7.5/kWh power tariff to ensure a complete turnaround and contribute to the economic uplift of the country, they said.

The average power tariff in the region is not more than 7/kWh and the current power tariff hike would make the textile value chain uncompetitive in the region.

Pakistan’s cost of power production is 26 percent higher for the industrial sector, compared with the other regional countries such as Vietnam, Sri Lanka, Malaysia, Bangladesh, South Korea, Thailand and India, and it is 28 percent costlier for residential areas than the regional countries.