LAHORE: Caretaker Federal Minister for Commerce, Industries and Production Dr Gohar Ejaz and Caretaker Federal Minister for Energy Muhammad Ali have discussed in detail the energy issues with members of All Pakistan Textile Mills Association (APTMA), assuring them of improving energy supply at affordable tariff to make exporters competitive in the world supply chain.
Both the federal ministers visited APTMA, where central Chairman Asif Inam, Chairman North Hamid Zaman and other top textile manufacturers welcomed them.
On the occassion, the entire APTMA leadership, including ex-chairmen Aamir Fayyaz, Ali Pervaiz Malik, Adil Bahsir, Ali Ahsan, and Ahsan Bashir, and leading textile exporters speaking on the occasion emphasized the need of energy in terms of availability and affordability.
Energy Minister Muhammad Ali said that the government would consider positively different options to resolve exporters’ energy problems.
He said the government was working on multiple fronts like tariff rationalization, wheeling charges, strengthening Boards of Discos for good governance and their ultimate privatization.
He further said that there is also a proposal of converting coal power plants on indigenous coal instead of imported one to bring down energy cost.
He said that the ministry was also considering enhancing payment period of independent power producers (IPPs) to stabilize cash outflow and bring down energy cost in the country.
In the gas sector, he said, the government was working on bringing in third terminal as well as working on long-term contracts for the import of LNG gas.
The minister said that the government would also increase domestic gas tariff, however, there would be no burden on the low-income class.
Speaking on the occasion, Commerce Minister Dr Gohar Ejaz said that he has fixed a target of generating 10 billion dollars additional exports during the current financial year to meet 37 billion dollars target, which requires Regionally Competitive Energy Tariff.
Reduction in energy cost
He also agreed that the industry needed reduction in energy cost to achieve 10 billion dollars additional exports by competing regionally.
The minister said that all the new textile mills are obtaining gas supply at 13 dollar per MMBTU against 8.5 dollar per MMBTU for the existing mills both in North and South zones. There is a need to eliminate a discrimination within the industry.
Dr Gohar Ejaz said the Special Investment Facilitation Council has curbed smuggling of imported clothes in the country worth 3.5 billion dollars, which is an opportunity for the manufacturers of synthetic fiber to fill the gap and meet the domestic demand. The SIFC has also combated smuggling and controlled flight of capital and dollarization of savings to bring interbank rate below the open market rate.
