The Pakistan Textile Exporters Association (PTEA) has strongly criticized the government’s decision to stop gas supplies to “highly efficient” captive power plants (CPPs) starting January 1, 2025.
In a joint statement, PTEA Chairman Sohail Pasha and Patron-in-Chief Khurram Mukhtar highlighted that the textile industry has invested billions in gas-based power plants to ensure reliable and steady power. Currently, 480 CPPs run on the SNGPL network, with another 800 on the SSGC network. These gas-based combined heat and power (CHP) systems are essential for maintaining the voltage stability necessary for textile operations, which could be jeopardized by fluctuations from grid power.
Pasha and Mukhtar emphasized that CPPs are the second-largest recipients of RLNG after the power sector and cautioned that halting gas supply to these plants could severely impact the $19 billion textile export industry, risking millions of jobs. They also warned that this decision would threaten the industry’s ability to fulfill international contracts for value-added products, potentially causing extensive disruptions and financial losses.
The association noted that government commitments to long-term RLNG contracts make the decision especially problematic, as it could lead to surplus RLNG and significant losses for the already struggling sector. Additionally, with no immediate alternatives, the industry may face widespread closures.
The PTEA argued that in-house CPPs, which generate both power and steam, are critical to industrial processes and operate more efficiently than government-owned power plants. They cautioned that assuming grid-supplied power, which suffers from transmission and distribution (T&D) losses, will be cheaper is misguided.
