Tag: APTMA

  • SNGPL commits uninterrupted winter gas supply to boost textile exports

    SNGPL commits uninterrupted winter gas supply to boost textile exports

    Sui Northern Gas Pipelines Limited (SNGPL) has provided a commitment to the All Pakistan Textile Mills Association (APTMA) regarding the seamless supply of gas to textile mills during the winter season.

    SNGPL, under the leadership of Managing Director Amer Tufail, assured an APTMA delegation led by Chairman Kamran Arshad that uninterrupted gas supply with optimal pressure would be maintained for the export industry.

    This measure aims to facilitate smooth production and enhance textile goods’ exports to maximise foreign exchange for the nation.

    During the meeting, MD Amer Tufail emphasised that the export industry, utilising a system integrated with RLNG (Regasified Liquefied Natural Gas), would be subject to a shared tariff of 50:50 for November.

    He highlighted the historical priority given to the export industry in gas supply and urged APTMA member mills without existing gas connections to apply promptly.

    Regarding new connections and load enhancements, Tufail mentioned that clarity on tariff applications would be sought from the Ministry of Petroleum in the near future.

    In anticipation of the non-availability of natural gas during the winter months from December to March, MD Tufail clarified that the industry would be charged at the RLNG rate set by OGRA on a monthly basis.

    Chairman Kamran Arshad raised concerns about industry confusion regarding gas tariffs for the upcoming winter months after the federal government’s tariff rationalisation.

    Discussions delved into issues such as gas tariff specifics for connections predating June 2022, post-June 2022 connections with or without zero-rated FBR certificates, and the utilisation of APTMA certificates for gas supply to zero-rated industrial units.

    MD Tufail acknowledged SNGPL’s limitations in determining eligibility for new connections, emphasising the need for the Commerce and Energy Ministries’ intervention to establish an eligibility framework.

    The meeting also addressed concerns related to new gas connections, faulty metre replacements, erroneous charging due to slow or faulty metres, and low gas pressure. MD Amer Tufail underscored the commitment to uninterrupted gas supply, particularly to export-oriented sectors, recognising the vital role of the textile industry in job creation, attracting investment, and boosting the country’s exports.

    He pledged a thorough examination of issues raised by APTMA and assured a proactive approach to ensure a smooth gas supply, with nominated focal persons from both SNGPL and APTMA tasked with holding periodic meetings to promptly resolve any gas-related challenges in the textile industry.

  • Pakistan’s textile industry struggles as exports fall by 28% in February

    Pakistan’s textile industry struggles as exports fall by 28% in February

    On Monday, the All Pakistan Textile Mills Association (APTMA) released provisional data indicating that Pakistan’s textile sector exports declined significantly by 28 per cent, totaling $1.2 billion in February 2023, compared to $1.67 billion in the same month the previous year.

    Additionally, APTMA reported that textile exports for the first eight months of FY23 decreased by 11 per cent to $11.24 billion, down from $12.60 billion in 8MFY22. These declines are alarming for Pakistan, whose economy is already struggling with depleting foreign exchange reserves.

    The country’s central bank has only $3.81 billion in reserves, which is barely enough to cover a month of imports.

    Industrialists in Pakistan have expressed concern about the ongoing slump in the textile sector. Data released by the Pakistan Cotton Ginner’s Association (PCGA) on Friday revealed that cotton arrival in Pakistan also decreased by 34.5 per cent year-on-year.

    Last month, APTMA urged the federal government to implement a uniform gas price of $7 per MMBtu for the export industry throughout the country to ensure a level playing field.

    APTMA also warned that the government’s decision to suspend the regionally competitive energy tariff (RCET) of electricity for Export Oriented Units (EOUs) would harm the textile industry, particularly in Punjab.

    In December, APTMA wrote a letter to Prime Minister Shehbaz Sharif, warning that the country’s textile exports could fall below $1 billion a month from 2023 onwards, highlighting a range of issues affecting the sector, which is currently operating at less than 50 per cent capacity utilization.

  • Pakistan loses $250m worth of textile exports due to gas shortage

    Pakistan loses $250m worth of textile exports due to gas shortage

    Pakistan has lost $250m worth of textile exports in December 2021 when the gas supply was suspended for 15 days in the Punjab textile sector.

    Executive Director of All Pakistan Textile Mills Association (APTMA), Shahid Sattar also confirmed the loss of millions of dollars by saying that it will “never be recovered.”

    The government restored gas supply on December 29 with the supply of 75 million cubic feet per day (mmcfd) by mid-January and ensured that the supply would be increased up to the finest level after the extreme winter season was over.

    On the other hand, the sources said that the gas being supplied to the export sector is less than the government announced despite the industry purchasing gas at $9 per Metric Million British Thermal Unit (MMBTU), instead of $6.5 mmcfd during the winters.

    The ministry of Commerce sources also revealed that the smooth supply of electricity was not received by the textile mills in Punjab from the national grid due to interruptions. They further added that it is causing huge losses to the industry, which may go up to $250-400 million per month.

    The textile mills association also sent the letter to the Advisor to Prime Minister on Commerce and Textiles Abdul Razak Dawood on January 7, in which they expressed their serious concern over the interruptions in the supply of electricity.

    The letter said, “Each interruption wastes half an hour and up to two hours in restarting the machinery, resulting in losing material and rendering capacity grossly underutilized.”

    It further added that mills were currently running on 80% capacity, which signifies a 20% loss of exports. “And this adds up to losses between $250-$400 million in exports lost every month”.

  • ‘PTI government will continue to rule country’, business tycoon quotes Gen Bajwa

    ‘PTI government will continue to rule country’, business tycoon quotes Gen Bajwa

    All Pakistan Textile Mills Association (APTMA) patron-in-chief Gohar Ijaz has said that COAS General Qamar Javed Bajwa told businessmen that “the sitting government will continue to rule the country”, The News International reported.

    According to the details, Gohar while talking in Geo News programme ‘Aaj Shahzeb Khanzada Kay Sath’, said that Thursday’s meeting of the army chief with the businessmen was arranged to give confidence to them.

    He added that the COAS said they fully support the Prime Minister (PM) Imran Khan and the business community should also support him. Gohar said the business leaders assured that they will stand by the PM and will also guide the government in case it makes any mistakes.

    The APTMA patron-in-chief said that the army chief assured the businessmen that no undue cases will be instituted against them through the National Accountability Court (NAB) and no businessman will face injustice.

    “The business community continuously holds meetings with the economic team and military leadership and the meeting with the COAS was not an unusual thing”, added Gohar Ijaz.

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    Top business leaders of the country had earlier called on COAS General Bajwa on Wednesday night to convey their serious concerns about Pakistan’s stagnating economy.