Textile Factories Seek Cheap Electricity from Punjab Govt

Notably, the All Pakistan Textile Mills Association (APTMA) has expressed interest in purchasing between 25 and 50 megawatts (MW) of electricity from the Punjab administration under an upcoming power auction, seeking more affordable energy for the textile industry.

Key points

• Govt Will Sell 9 Power Firms Without Consulting Provinces.
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• APTMA remarked the province's high industrial electricity tariffs had undermined the competitiveness of its textile industry, contributing to factory closures and deindustrialization.

In a letter dated October 14 to Punjab Power Development Board Managing Director Sania Awais, APTMA remarked its members were interested in exploring business-to-business or government-to-business arrangements to procure electricity at competitive and sustainable tariffs.

For context, the Punjab administration is considering participating as a power generator in the upcoming auction of the first 400 MW under the Competitive Trading Bilateral Contract Market (CTBCM) framework. Govt Will Sell 9 Power Firms Without Consulting Provinces.

APTMA remarked the province's high industrial electricity tariffs had undermined the competitiveness of its textile industry, contributing to factory closures and deindustrialization. It remarked the proposed market framework could introduce competition, improve efficiency and provide industries with access to competitively priced power.

Based on preliminary indications, APTMA remarked demand from interested members could range between 25 MW and 50 MW, with the potential to rise depending on commercial viability, tariff structures and supply terms.

For context, the association additionally sought engagement with the Punjab Power Development Board to understand proposed generation projects and explore opportunities for private-sector participation, including potential investment by member businesses.

APTMA clarified that while some members may evaluate the opportunities, any investment or participation decisions would remain at the discretion of individual firms, subject to their own technical, financial and commercial assessments.

Notably, the association remarked it looked forward to working with the provincial administration and the power board on commercially viable solutions to reduce industrial energy costs, restore competitiveness and backing the expansion of Punjab's textile industry and exports. Stay Connected with ProPakistani.

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For now, textile Factories Seek Cheap Electricity from Punjab Govt remains the part of the story worth watching, and further updates are likely as more details are confirmed.