PESHAWAR
\nThe Khyber Pakhtunkhwa Textile Mills Association (KPTMA) has said that the recent decision by the government to raise gas prices a blow to the textile sector of the country.
\nIn a statement issued here on Friday, Mr Kamran Shah, Chairman KPTMA expressed concern over the manifold increase in the energy costs and voiced grave apprehensions regarding the adverse impact of the government\u2019s actions.
\n\u201cThe decision to hike gas prices by 14.58 percent within three months, coupled with a staggering 150 percent increase since January 2023, and overall increase of 222.77 percent from the rate of Rs. 852 per MMBTU applicable till 31st December 2022, has sent shockwaves through the textile industry, particularly in Khyber Pakhtunkhwa,\u201d said the Chairman KPTMA.
\nHe further stated that earlier in November 2023 Caretaker Government had increased gas prices by 118.18% as compared to the rate applicable from January 2023 and 181.69 percent from the rate applicable till 31st December 2022, these increase in gas tariff is beyond the absorption limit of the export oriented textile industry and became uncompetitive in the international market as we cannot export inflation.
\nHe added that increase in gas prices thrice since January 2023 has put an extra and unmanageable burden on the textile industry of Pakistan especially textile industry of KP due to which they lost their competitiveness in the international market and also lost their its share in the national market.
\nMr. Shah highlighted the dire consequences of the gas price surge, revealing that half of the textile industries in Khyber Pakhtunkhwa have already ceased operations, with the remaining enterprises teetering on the brink of closure.
\nHe said that the recent notification from the Oil and Gas Regulatory Authority (OGRA) announcing yet another gas price hike on February 15, 2024, has further exacerbated the industry\u2019s plight, hastening its downward spiral.
\nMr. Shah emphasized the government\u2019s responsibility to foster industrial growth through business friendly policies, lamenting the current trajectory as counterproductive.
\nHe urged for a maximum 20 percent increase in utility prices annually, warning that anything beyond this threshold would render the market untenable but increase in gas prices by over 222.77 percent during a year is not absorbable and manageable, and ultimately the remaining industries will close their operations.
\nFurthermore, Mr. Shah underscored the potential ramifications of the gas price surge, including the risk of industrialists resorting to importing yarn from abroad, exacerbating the strain on the country\u2019s foreign exchange reserves and precipitating the depreciation of the Pakistani Rupee.
\nIn light of these developments, the KPTMA strongly opposes the government\u2019s gas price hike and urges a reconsideration of its stance. The association remains committed to advocating for the interests of its members and safeguarding the future of Pakistan\u2019s textile industry.<\/p>\n","protected":false},"excerpt":{"rendered":"
PESHAWAR The Khyber Pakhtunkhwa Textile Mills Association (KPTMA) has said that the recent decision by the government to raise gas prices a blow to the textile sector of the country. In a statement issued here on Friday, Mr Kamran Shah, Chairman KPTMA expressed concern over the manifold increase in the energy costs and voiced grave […]<\/p>\n","protected":false},"author":2,"featured_media":387590,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-387576","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n