Pakistan Textile Exporters Association has threatened the government regarding its plan to stop gas supply to Captive Power Plants from January 1, 2025. It stated that this would seriously damage Pakistan’s $19 billion textile export industry as CPPs provide it with a constant power supply against global commitments.
PTEA Patron-in-Chief Khurram Mukhtar and Chairman Sohail Pasha in a joint statement said that the massive layoffs and factory shutdowns are awaiting the sector as CPPs form the backbones of reliable power for this industry. The textile sector has invested heavily in the gas-based power system where 480 CPPs have been connected with SNGPL and another 800 to SSGC. The immediate switch to the rather vulnerable national grid which faces distribution and transmission issues would pose a threat to activities in industries, mainly affecting costly equipment breakdowns.
PTEA officials pointed out that CPPs are more energy efficient because they generate both power and steam, which is highly important in the intricate production processes of textiles. According to them, the end of CPPs will bring about a situation where there might be surplus Re-gasified Liquefied Natural Gas (RLNG), which will make things worse in the gas sector already overburdened with circular debt worth Rs2,700 billion.
The federation also highlighted the damage inflicted on Pakistan’s international obligations. The textile industry would have to offer value-added goods to the world. Interruption in the production process would mar the reputation of Pakistan as a reliable supplier. Without adequate and timely solutions to meet the energy needs of the textile industry, the government move may lead to the shutdown of large factories that would significantly impact Pakistan’s exports and overall economic stability.
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