The Pakistan Textile Council (PTC) has formally urged the government to remove cross-subsidies embedded in industrial electricity tariffs, highlighting that current power pricing distortions are undermining the competitiveness of Pakistan’s export-oriented textile sector. In a letter addressed to Adviser to the Prime Minister Dr. Syed Tauqir Hussain Shah, the PTC called for the elimination of cross-subsidy costs totaling Rs. 160 billion across XDISCOs and K-Electric. The Council emphasized that charging industries the actual cost of electricity would improve grid utilization, reduce incentives for firms to shift to off-grid power generation, and lower production costs for manufacturers.
The PTC highlighted that industrial electricity tariffs currently carry a substantial cross-subsidy burden, placing Pakistan’s exporters at a disadvantage compared to regional competitors. The Council also raised concerns over the blanket application of the Time-of-Use (ToU) tariff regime, which imposes peak and off-peak rates on industries operating three-shift operations. Exporters providing stable base-load demand are penalized through peak-hour charges, forcing either production reductions or absorption of unsustainable costs. With incremental tariff regimes already in place, the PTC argued that the rigid ToU framework has lost its economic rationale and requires urgent review.
Noting declining textile and apparel exports across major products and key markets, including the European Union, the United States, and the United Kingdom during the first half of FY2025–26, the Council warned of an export emergency. It cautioned that intensifying regional competition and new trade agreements by neighboring countries could further weaken Pakistan’s export base without decisive and time-bound government intervention.
The PTC concluded that Pakistan’s textile sector possesses the capacity, skilled workforce, and international market linkages to drive export-led recovery, but stressed that this potential can only be realized through immediate policy reforms ensuring a predictable, rational, and cost-competitive energy pricing regime.
