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Web Exclusive | December 2017

PTEA demands supply of system gas to textile industry

The Pakistan Textile Exporters Association (PTEA) has expressed grave concern over suspension of system gas under quota regime and supply of high priced RLNG to export oriented textile industries in Punjab. This would further add to the high cost of doing business and would hamper the export pace.

Chairman PTEA Shaiq Jawed expressed severe concern over switching of system gas to RLNG supply for textile industry in Punjab on a lame excuse of drop in mercury. He condemned the government’s indifferent attitude towards Punjab-based textile industry as it is already facing a serious blow of non-viability due to high cost of doing business. Supply of high priced RLNG would serve to cripple the industry which is already at a comparative disadvantage in respect of production costs in the region, he said.

Quoting the gas tariffs within the region, he said, “Gas price in Bangladesh is $3/mmbtu, in Vietnam $4.2/mmbtu, in India $4.5/mmbtu; whereas in Pakistan system gas was available at $7.6 and now RLNG would cost at $11 per mmbtu. With such a huge difference in tariff, how our products would compete with rival countries.”

Further, RLNG would cost almost 40 per cent higher than other provinces, he lamented. Gas tariff is already burdened with various incidentals such as UFG at 10 per cent, GIDC at Rs 100/mmbtu and cost of supply etc; whereas exporters cannot pass on these system inefficiencies to the international buyers. Export-oriented textile industry has an established right on the system gas, which the SNGPL is making expensive through unjustified steps.

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