Discos rift: Industry's electricity supply being disconnected

As the textile industry is facing power supply disconnections due to differences with respective power distribution companies (DISCOs) across the province, the All Pakistan Textile Mills Association (APTMA) leadership has called for re-connections of electricity supply to the textile mills at the committed tariff of 7.5 cents per kWh to the export-oriented industry.

The leadership addressed a press conference at the APTMA Punjab office. Central Chairman APTMA Dr Amanullah Kassim Machyara, Chairman APTMA Punjab Adil Bashir and Group Leader APTMA Gohar Ejaz spoke to the media.

Central Chairman APTMA Dr Amanullah Kassim Machiara said the industry was planning new investment despite the prevailing liquidity crunch due to stuck up refund claims. He said an increase in energy price after withdrawal of electricity supply at flat rate of 7.5 cent has panicked the industry.

Chairman APTMA Punjab Adil Bashir said the government should fulfill its commitment of providing regionally competitive energy, i.e. electricity at 7.5 cent per kWh. He stated due to the government's commitment of providing 7.5 cents electricity tariff led to an increase in textile exports whereas the garment exports increased by 35 percent in the last four months.

He said the government has imposed various surcharges after the withdrawal of zero-rating alongside GST and Income Tax. The industry has also been burdened with Quarterly Tariff Adjustments (QTA) besides introduction of the Additional Distribution Surcharge to the industry retrospectively from 1st of July. The exportoriented industry relying upon electricity supply throughout Pakistan has been burdened with approximately 30 to 35 percent additional surcharges added to the electricity bills retrospectively, he added.

He said due to the government's export-friendly policies, the industry took new investment initiatives which are in the pipeline. The decision of imposing additional surcharges despite the commitment given by the prime minister has put all new investments at a halt in the country. Only an assurance of constant energy supply in its remaining period, the industry would materialize new investments, which are in doldrums at present.