APTMA Challenges FBR’s Rs74B Power Subsidy Estimate

Islamabad, July 16, 2025, 02:58 PM PKT — The All Pakistan Textile Mills Association (APTMA) has launched a fierce challenge against the Federal Board of Revenue (FBR)’s estimate of Rs74 billion for the cross-subsidy in industrial power tariffs, with Secretary General Shahid Sattar slamming the figure as grossly understated in a letter to Power Minister Sardar Awais Khan Leghari. Citing the National Electric Power Regulatory Authority (Nepra)’s FY26 determination, APTMA claims the true burden hits at least Rs137 billion, with FY25 data suggesting nearly Rs140 billion, potentially rising 2-3% with future demand. The dispute hinges on calculation methods, as APTMA insists on category-specific cost-of-service over the government’s averaged approach.

APTMA demands a regionally competitive 9 cents/kWh tariff, backed by regional benchmarks and domestic studies, while flagging wheeling charges as a threat to the Competitive Trading Bilateral Contract Market (CTBCM) for renewable energy, urging tariff predictability for exporter planning. It welcomed the new incremental consumption package but seeks flexible Time of Use (ToU) tariffs. Web context highlights tariff disputes, while posts found on X show frustration—some back APTMA’s stance, others question government data. Critically, the narrative of “subsidized tariffs” may mask calculation flaws—web data points to past discrepancies, and X sentiment suggests distrust in official figures, hinting at escalating tension.