The All Pakistan Textile Mills Association (APTMA) has said that the abrupt rise in power tariffs, pursuant to the new energy policy, will hurt the country’s textile industry.
Under the new National Energy Policy 2013-18, the power tariff rates for textile industry have been hiked from Pk Rs. 9.18 per kilowatt hour (KWh) to Pk Rs. 14.82 per KWh since August 2013, which has badly affected the efficiency of the textile industry, particularly in Punjab, where around 70 percent of the textile units of the country are concentrated, APTMA Punjab spokesperson said.
The recent hike of around 61.32 percent has pushed up the electricity rates for Pakistani textile industry to nearly 14.4 cents, much above the average below 10 cents rate prevailing in the South Asian region.
Power tariffs in India, China, Bangladesh and Sri Lanka prevail at around 11.3 cents, 8.5 cents, 7.3 cents and 9.2 cents, respectively.
Also, the rate of interest that Pakistani textile entrepreneurs pay is high at 9 percent, as compared to 7.25 percent in India, 6 percent in China and 7.75 percent in Bangladesh.
According to the APTMA representative, hike in power tariffs would greatly hurt the textile industry in Punjab, which is already enduring high power tariff as compared to other provinces in the country.
The continuing power crisis, high power tariffs and interest rates, and spiralling labour costs would cause the textile industry to lose its potential of earning about US$ 13-14 billion per year in exports, directly impacting employability and economic growth, he said.
APTMA thus called on the Government to immediately review the situation and accordingly either rollback the tariff hike or let it continue after significantly reducing the interest rates so that the growth and labour productivity are not impacted.
Middle East News
- Media Information: Autefa Solutions announces new agency for the Indian market
- Denimsandjeans India to discuss trend of unisex denim
- RBI keeps repo rate unchanged at 6%
- Maharashtra cabinet approves textile policy for 2018-23
- UAE has the lowest VAT regionally and globally
- Costs rise at sharpest pace for UAE’s private sector businesses
- Budget 2018-19: Customs duty on silk fabric hiked to 20%
- Reduction in tax for MSMEs to benefit TN textile firms
- Budget: TEA hails Rs 7148cr allocation for textile sector
- Indian textile industry hails budget with some scepticism
- Arvind Q3 revenue up 16% at Rs 2,706 crore
- Amazon infuses 1,950 cr fresh capital to India operations
- Indian brand Ekaya at Paris Haute Couture Week
- E-commerce platform for artisans in India's Kashmir
- SRTEPC honours RIL with 5 gold trophies
- Indian economy to grow at 7.3% in FY 2018-19: World Bank
- Wazir Advisors Introduction
- 10 Reasons to Invest in Textile Sector in India
- India’s Standing in Global Textile and Apparel Industry
- India: A Land of Opportunities
- Patterns, images and colors demanded in the Iranian carper markets
- CE certificate or sign on the carpet; Indicator of product quality or inaudible imprint of international clarification
- The classification of textile floorings In terms of fire-taking behavior according to the provisions of European Union
- Remain unknown the place of modern carpet design