Pakistan

Cheap gas will be provided to Karachi’s export industry in winter, says government

The Federal Government and the textile sector have agreed to provide uninterrupted supply of Regasified Liquefied Natural Gas (RLNG) to the exporting industry on priority basis for the next 3 months from December.

According to Dawn, Javed Balwani, chairman of the Pakistan Apparel Forum, said that the export industry had offered the Ministry of Energy ڈالر 9 per mmbtu for captive power plants and 6. 6.5 per mmbtu for their boilers. Assured to buy RLNG by calculation.

He said the agreement was reached in a virtual meeting with Energy Minister Hamad Azhar on Friday.

However, no notification of the agreement has been issued by the Ministry of Energy.

Hamad Azhar said on the social networking site Twitter that a fruitful meeting was held with exporters from all the provinces.

He further said that the meeting had assured the export industry of uninterrupted supply of gas during winter and as a result faulty gas captive plants would be converted to electricity.

In this regard, Javed Balwani said that several major exporters in Karachi have only RLNG connections and Sui is receiving .6 15.62 per MMBTU for Southern supply but despite the high tariff, the pipeline I do not have the required gas pressure.

Javed Balwani lamented that in spite of such expensive gas, there is almost 12 hours gas outage in daily hours.

He called the current agreement a “best move” in light of the costly gas and its closure.

He added that textile exporters are fully aware of the shortage of gas in winter and appreciate the government’s support for the export industry.

Javed Balwani said that the value added textile industry is willing to pay the fixed price provided the Ministry of Energy ensures uninterrupted supply of gas along with the required pressure.

Javed Balwani also pointed out the difference in RLNG prices for the provinces.

He said that Karachi’s export industries account for more than 54% of total exports but despite this Karachi textile exporters are deprived of subsidized RLNG tariff which gives Punjab industries 6. 6.5 per MMBTU. Or ڈالر 9 per MMBTU.

He said that importers of Karachi also demanded the same concessional tariff of RLNG.

Javed Balwani suggested to the Ministry of Energy that in line with the government’s policy of increasing exports, all necessary steps should be taken to supply gas to export industries so as to increase Pakistan’s exports.

He said that with this strategy the export industries would not have to suffer and the wheel of industry would continue to run smoothly during the winter quarter which would ultimately lead to more valuable foreign exchange for Pakistan.

According to the Pakistan Bureau of Statistics, exports of textiles and garments increased by 26.55% to 0 6.02 billion from 4. 4.75 billion at the beginning of this year.

In the textile sector, the export value of readymade garments increased by 22.34% and the quantity by 20.50% during July-October of the business year 22-2021.

According to the data, the export value of woven fabrics increased by 35.45% but the number decreased by 13.11%.

In terms of volume, the value of badwear exports has increased positively by 21.30% and quantity by 23.53%.

Exports of towels increased by 14.17% and quantity by 7.75%, while cotton fabrics increased by 18.54% and quantity decreased by 76.83%.

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