The notified tariff, however, tells only part of the story. Once the separate captive-power levy is added, the effective cost rises to around ****;*,*** per MMBTU, according to a letter sent this week by All Pakistan Textile Mills Association (APTMA) Chairman Kamran Arshad to Prime Minister Shehbaz Sharif. His assessment was direct: Pakistan**;s T&A export sector, valued at roughly $** billion, is now exposed to a structural cost shock.
Why this tariff hike changes the cost equation
The implications extend well beyond a routine tariff revision. Pakistan**;s T&A industry has long relied on captive gas generation because the national electricity grid remains both less reliable and, in many cases, more expensive. That dependence has now become a competitive disadvantage.
The captive-power levy, introduced to encourage industries to shift from self-generation to the national grid, is scheduled to increase to ** per cent by August ****. That means mills face a second round of cost escalation only weeks after the July adjustment.
