A pointy improve in fuel levy to Rs. 1,243 per MMBtu has triggered robust opposition from Pakistan’s textile trade, with enterprise leaders warning that the transfer may undermine the nation’s export development ambitions.
The Pakistan Textile Council stated the levy, imposed on off-grid captive energy vegetation for December 2025, represents a significant value shock to export-oriented industries that depend on fuel for power.
Trade leaders argue that the choice comes at a essential time when Pakistan is focusing on exports of $60 billion beneath its financial roadmap, making the coverage counterproductive for development.
The levy has risen steeply inside a brief interval, growing from Rs. 402 per MMBtu to Rs. 1,243 per MMBtu, with additional escalation constructed into the framework.
In line with the trade, the rapid impression is already seen, with export sector fuel demand declining, home fuel curtailment reaching round 300 MMCFD, and LNG cargoes being diverted.
Issues have additionally emerged over operational disruptions in fuel utilities, as diminished industrial consumption impacts throughput and system stability.
Chairman of the Pakistan Textile Council, Fawad Anwar, stated the levy creates uncertainty in power pricing by permitting further prices past regulator notified tariffs.
He famous that such unpredictability makes it tough for traders to plan, companies to handle prices, and banks to finance industrial operations, growing total financial danger.
Trade stakeholders have additionally raised issues over the construction of the levy, which applies equally to all captive energy vegetation, together with excessive effectivity cogeneration methods.
They argue that this strategy discourages power effectivity, as globally such methods are usually incentivized for decreasing emissions and enhancing gas utilization.
One other key concern is using levy proceeds to subsidize electrical energy tariffs for different client classes.
Trade representatives say this successfully shifts monetary burden onto export oriented sectors, elevating questions on equity and financial effectivity. The Pakistan Textile Council has known as for a evaluate of the coverage, urging the federal government to revive regulator primarily based pricing, shield environment friendly power methods, and align power prices with export competitiveness.