Aptma Opposes Proposed Rs2.52/kWh Power Hike

The All Pakistan Textile Mills Association (Aptma) has objected to a proposed positive Fuel Price Adjustment (FPA) of Rs2.52 per kilowatt-hour for July 2026, warning that the additional electricity cost could further undermine the international competitiveness of Pakistan’s export-focused textile industry.

Aptma Chairman Kamran Arshad has called on the National Electric Power Regulatory Authority (Nepra) to turn down the proposed adjustment. He argued that industrial consumers should not be made responsible for expenses that do not reflect the actual cost of supplying electricity to them.

The association has particularly questioned the electricity pricing arrangement under the Incremental Consumption Package, under which additional electricity consumed by industrial and agricultural users is being charged at Rs22.98 per kWh.

According to Aptma, actual marginal generation costs have remained above this rate for much of the period since the package was introduced. The association believes any resulting financial shortfall should instead be recovered from consumers benefiting from the package rather than being distributed among the wider consumer base through FPAs and quarterly tariff adjustments.

The textile sector has also raised concerns about what it described as an unusually low reference Power Purchase Price for July. Aptma maintains that unrealistic assumptions used in determining the reference price contributed to the proposed increase in the FPA.

The association stressed that stable and predictable electricity costs are critical for export-oriented manufacturers. Textile exporters often receive orders and lock in prices several months before production, meaning unexpected increases in energy expenses can directly reduce profit margins and weaken their ability to compete in international markets.

Aptma has additionally criticised Pakistan’s continued dependence on expensive RLNG-based electricity generation. It argued that mandatory gas purchase commitments should not lead to costly power being dispatched when lower-cost generation options are available within the system.

The association noted that Pakistani textile exporters already pay electricity tariffs considerably higher than those faced by competitors in several regional markets. Passing unnecessary generation and system-related expenses onto industrial users, it warned, could discourage businesses from relying on grid electricity and further damage Pakistan’s position in global textile trade.

Aptma has urged Nepra to prevent industrial consumers from absorbing costs arising from inefficient power dispatch, unrealistic pricing assumptions and broader structural weaknesses in the electricity sector. It also called for an immediate review of the Incremental Consumption Package so that unexpected costs are assigned to the consumers and mechanisms responsible for creating them.