In a recent decision, the government has placed domestic and commercial consumers at the forefront of gas supply priorities, relegating industrial users to the last position.
The Federal Ministry of Energy and the Petroleum Division has amended the priority order list for gas supply, now designating captive power units as the lowest priority. According to the notification, industries will be categorized with CNG and the cement industry as third and final in the priority list. This means that during periods of gas shortages, particularly in winter, the first priority will go to domestic and commercial consumers, followed by special commercial and processing industries. Fertilizer factories and the power sector will receive the second priority, while captive power, cement, and CNG will be last.
The textile industry has expressed grave concerns regarding this amendment, describing it as a threat to its survival and has urged the Special Investment Facilitation Council (SIFC) to take notice. Sources within the textile sector warn that this move could exacerbate the already critical situation, further jeopardizing exports.
The textile industry, which contributes 60% to the country’s exports, is at risk of collapse due to rising production costs, energy shortages, and pressures from the global market. Textile exporters have warned that a 30% increase in production costs coupled with a 20% decrease in exports places the industry on the brink of disaster, while outstanding refunds amounting to 100 billion rupees remain unpaid.
The industry has appealed to the SIFC for assistance in providing energy subsidies (at $6-7 per MMBTU gas and 5-6 rupees per unit for electricity), financial relief (payment of pending refunds, reduction in customs duties, and exemptions on sales tax for raw materials), and infrastructure support (upgraded textile parks, testing laboratories, and logistics) to help maintain Pakistan’s share in the international market.
The textile sector has called for immediate action to protect the industry and millions of jobs. This includes measures to reduce energy prices, ensure gas availability for captive power, provide interest-free loans for renewable energy, facilitate technology transfer, enhance skills development, and improve market access—all aimed at ensuring economic stability and growth for Pakistan.
