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KARACHI: All Pakistan Textile Mills Association (Aptma) has criticised the government for the proposed increase in gas tariff by 14 per cent from Jan 1, and apprehended that it will intensify circular debt and also push power tariff up.
In a statement, APTMA chairman of Sindh-Balochistan zone Muhammad Yasin Siddik said that gas tariff for industrial consumers since July 2009 had been increased by 34 per cent and fresh increase of 14 per cent in gas tariff would push it up to 53 per cent.
The export-oriented industry, particularly textile sector, he said, was not in a position to bear such a huge increase in input cost because it could not export inflation and would become uncompetitive.
He said that further increase in gas tariff would affect all sectors of the industry and also intensify circular debt problem which was already at an alarming position of Rs444 billion.
M Yasin Siddik said increase in gas tariff from the next year was highly damaging for the industry because it would increase cost of doing business.
He also said that such increase in gas tariff would be counter-productive and largely disturb and dislocate the entire industry. In order to stabilise the industry, particularly the textile sector, from spinning to processing the government should give exemption from such hikes. Mr Siddik apprehended that higher cost of inputs would gradually make the industry uncompetitive in the world market and export orders would gradually fall in coming months.
He urged the government to immediately take measures to ensure uninterrupted gas and power supply to industry to save exports and millions of jobs at this critical juncture.
