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70pc of industry unable to pay Oct gas bills: APTMA

SNGPL charging $ 12.53 per MMBTU instead of $ 6.5

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M J Hayat

LAHORE: The central and Punjab chairman’s of All Pakistan Textile Mills Association (APTMA) have expressed the textile industry’s inability to pay the gas bills issued in accordance with the US$ 12.5389/MMBTU instead of US$ 6.5/MMBTU for the month of October 2018 US$ 12.5389/MMBTU instead of US$ 6.5/MMBTU for the month of October 2018 for consumption of both captive and processing use.

“The 70 percent of the industry have no capacity to pay these bill and if the bills are not revised more than 50 to 100 textile will further be shutdown adding to the unemployment and shattering the dream of increasing the exports” the APTMA central and Punjab leadership said this while addressing a press conference Friday.

The APTMA demanded that decision of ECC meeting dated September 17, 2018 be implemented in letter and spirit.

If the bills are not revised more than 50 to 100 textile will further be shutdown adding to the unemployment and shattering the dream of increasing the exports: leadership

“Directions may please be issued to SNGPL to issue revised gas bills of October 2018 (and thereon) to the eligible industry @ US$ 6.5/MMBTU all inclusive on gas consumption for both captive and processing use,”
it was said, notification for providing electricity at cents 7.5/kWh be immediately issued.

Only Export led growth Policy is the way forward which will enable industry to increase production and undertake new investment decisions for technology up-gradation and value addition, which will not only
generate exportable surplus but also new sustainable jobs, it was said The APTMA chairmen said the industry is already facing liquidity crunch leading to closure of 100 mills and more are on the verge of closure due to the prevailing uncertainty. Already, the FBR has withheld Rs200 billion refunds of the industry.

They said the SNGPL has billed the industry the notified price of RLNG US$ 12.5389/MMBTU instead of US$ 6.5/MMBTU for the month of October 2018. The industry cannot pay the hefty amount of bills and has
serious liquidity constraints as millions of refunds of industry are stuck with Government under DLTL, Sales Tax and Other Textile Policies/schemes. They further pointed out that US$ 6.5/MMBTU is not inclusive of GIDC.

They said the industry has consumed the allocated volume of gas (185 MMCFD) in October in order to maximize production to generate exportable surplus upon the assurance of Federal Finance Minister.

They urged the government to issue directions to SNGPL for issuance of revised gas bills of October 2018 (and thereon) to the eligible industry @ US$ 6.5/MMBTU all inclusive on gas consumption for both captive and processing use.

They pointed out that these directions would be in line with the decision of ECC meeting dated September 17, 2018, which needed to be implemented in letter and spirit.

He demanded of immediate issuance of notification for providing electricity to export industry at cents 7.5/kWh.

They said the exporting industry hardly meet its in-house energy requirements through captive power generation and cannot rely on grid electricity due to quality issues and frequent interruptions which
disrupt the sensitive processes of the industry and loss of production.

They stressed that only  export led growth Policy would be the way forward to enable industry to increase production and undertake new investment decisions for technology up-gradation and value addition,
which would not only generate exportable surplus but also new sustainable jobs.

They warned that the industry will close down its operations if the government is not interested in providing enabling environment to industry to maximize their production to generate exportable surplus.

There is a market slow down due to uncertainty and the new government is keen to reduce current trade deficit which can only be done by enabling exporting industry to function at their full potential.

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