The Pakistan Textile Council (PTC) on Thursday urged the government to reconsider a proposed increase in gas prices for captive power plants as it risks hampering the textile sector’s ability to compete in the international market.
In a statement, PTC Chairman Fawad Anwar voiced his organization’s concern over a government proposal to increase gas prices for captive power plants to more than Rs. 4,000/MMBtu. Stressing that the textile and apparel sector was a cornerstone of Pakistan’s economy, he noted it relied heavily on captive power plants for consistent and cost-effective energy supply.
The proposed gas price increase, he warned, would exacerbate production costs, undermining the sector’s ability to compete in international markets. “Escalating energy costs are already a major challenge for our industry,” he said. “Further increases could lead to factory closures, job losses, and a significant decline in export revenues,” he added.
“We appeal to policymakers to engage in dialogue with industry stakeholders to find a balanced solution that safeguards both the economy and the livelihoods dependent on the textile sector,” he said, stressing for a reconsideration of the proposal.
The PTC said it remains committed to working alongside the government to address the pressing challenges. It emphasized the importance of implementing policies that ensure the textile sector’s sustainability and its pivotal role in driving Pakistan’s economic development.
Earlier, the Sui Southern Gas Company (SSGC) had announced a 50% reduction in gas supply for captive power plants from Jan. 1-31, 2025, citing a severe deficit in gas reserves.