ISLAMABAD: The Pakistan Textile Exporters Association (PTEA) has strongly condemned the government’s decision to discontinue gas supply to highly efficient captive power plants (CPPs) from Feb 1, 2025.

PTEA Patron-in-Chief Khurram Mukhtar called the move a critical threat to the textile industry and a barrier to realising Pakistan’s full export potential, according to the association press release issued on Tuesday.

The textile sector has billions of rupees invested in gas-based power generation systems to ensure stable and reliable energy for industrial operations. Across the country, 480 CPPs operate on the SNGPL network and 800 on the SSGC network, relying on combined heat and power (CHP) systems to maintain voltage stability and avoid damaging highly automated machinery.

The inability of distribution companies (Discos) to provide consistent and reliable power will disrupt production and cause significant financial losses to the textile value chain,” said Mr Mukhtar.

CPPs, which provide power and steam for industrial use, are far more efficient than government-operated power plants. The flawed assumption that grid electricity — burdened with transmission and distribution (T&D) losses — will be cheaper than energy from CHP systems underscores the lack of proper planning.

Additionally, technical constraints in the grid make it nearly impossible to meet the energy demands of industrial units, many of which require more than 10MW per hour.

Published in Dawn, December 11th, 2024