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LAHORE, Dec 04 (APP): Punjab Minister for Energy and Sports Faisal Ayub Khokhar has said that the provincial government will take all possible measures for rejuvenation of industry by ensuring provision of energy at an affordable cost.
He stated this while discussing in detail with members of APTMA, the deindustrialization in Punjab due to high energy costs, on Thursday. Both sides explored ways and means to provide energy at affordable tariff.
Faisal Ayub Khokhar along with Dr. Farrukh Naveed, Provincial Secretary Energy, Muhammad Majid Iqbal, Additional Secretary Energy Department and Ms. Sanyia Awais, MD Punjab Power Development Board visited the office of All Pakistan Textile Mills Association (APTMA) where APTMA Chairman Kamran Arshad, Chairman (North) Asad Shafi and Vice Chairman Ahmad Shafi welcomed the delegation.
Energy Minister Faisal Khokhar said, provincial government would positively consider all options to resolve energy issues being faced by textile industry. He said that both Federal and Punjab governments are working on multiple options to revitalize industry in general and export oriented sectors in particular.
Faisal assured that the Punjab government would always fight for rights of industry and to lower power tariff. He added, there is proposal of converting coal power plants on indigenous coal instead of imported coal to bring down energy cost. Besides, all educational institutions, hospitals and social departments are being solarized. “Multiple options are under consideration of both the federal and provincial governments to bring down energy cost in the country,” he mentioned.
He made it clear that industry is priority number one of the government, citing that no country can make progress without utilizing full potential of industry as the industry bolsters economy, generates employment, enhances tax collection and upsurge exports.
The Energy Minister said that industry in Punjab is at disadvantage as other provinces have more natural resources like gas, water, coal and wind to produce cheaper electricity. He hoped that this difference would get mitigated in future with more prudent utilization of resources available with Punjab.
Faisal continued that a strong industrial sector requires concerted efforts by the government, banks, industry and trade organizations to foster meaningful dialogues serving as a platform for critical thought. Governments are required to set up sharper, more responsive financial solution aligned with real industry needs and greater openness to new models, risk sharing tool and innovation in export and energy finance.
The Minister for Energy announced formation of joint APTMA-Energy Department Committee consisting of Provincial Secretary Energy, Central and Zonal Chairmen of APTMA to examine options for supply of cheaper energy.
On the occasion, APTMA Patron in Chief Dr. Gohar Ejaz said the goal of uplifting exports requires Regionally Competitive Energy Tariff (RCET). With regional tariff, Pakistan can fetch 10 billion dollar additional on exports of textiles.
He supported the idea of supplying electricity to the export-oriented industry by activating 1300 megawatt Trimmu Power Plant in the province of Punjab and dedicating it to the industry only. He urged the Punjab government to lay dedicated transmission line from Trimmu power plant to industrial estates and textile clusters. He said that the entire industry in Punjab does not require more than 2000 MW of electricity and production capacity of Punjab Government owned plants is about 2400 MW which is enough to supply cheaper energy to the whole industry. He said that with prudent approach, these plants can supply energy at the cost of about Rs. 15/Kw.
Gohar offered from APTMA to install solar power plants across the province and wind power plants in Pothohar and Rajanpur. He said that cheaper electricity can be supplied to industrial estates and clusters through dedicated distribution line to be erected by Punjab government.
APTMA Chairman Kamran Arshad gave an overview of Pakistan’s textile industry, major issues faced by the industry especially excessive energy cost and way forward for enhancing coordination with the provincial government. He also presented 50 billion dollar textile export vision through setting up of 1000 garments plant with plug and play facilities in dedicated Apparel Parks. He sought assistance from the provincial government for development of proposed Apparel Parks which would not only boost exports but also generate employment opportunities for millions of workers directly and indirectly to help in poverty alleviation and uplift foreign exchange reserves.
Highlighting export potential of Pakistan, Kamran said that Pakistan has witnessed impressive growth in value added textile sectors. He added that more than 70 percent of Pakistan’s exports consisted of knitwear, garments, bed wear and towels. Value added exports have registered marvelous growth during the last decade especially after GSP Plus granted to Pakistan by EU. He said with the provision of energy and affordable cost, Pakistan ‘s exports would register unprecedented growth.
Asad Shafi, Chairman North, highlighted massive improvements achieved by textile industry of Pakistan and compliance of all UN conventions especially relating to labour and human rights, good governance, environment and emission control. He said that Pakistan has launched a National Compliance Centre which will work with business community to improve understanding of international compliance requirements and to promote a culture of equitable growth and discrimination free workplace.
Leading textile exporters and manufacturers including Mian Muhammad Shakeel, Haroon Elahi Shaikh, Muhammad Ali, SM Nabeel, Bilal Danish, Faisal Jawed, Danish Aslam, Ahsan Shahid, SM Raffay, senior APTMA executives and Secretary General Raza Baqir also attended the meeting.