Pakistan processors seek reliable utilities and lower power costs

The All Pakistan Textile Processing Mills Association (APTMA) has put three utility priorities before Pakistan’s government: uninterrupted gas and water, plus electricity tariffs reduced to competitive levels.

The proposal comes from Pakistan’s textile processing mills, where gas, water and power shape export costs.

APTMA vice chairman and Karachi regional in-charge Muhammad Rizwan Lakhani said persistent utility shortages and rising power costs are increasing production costs.

Those conditions make Pakistani products harder to price against competing countries, according to Lakhani.

“Unreliable supply of energy and essential industrial utilities is continuously increasing production costs, making Pakistani products more expensive than those of competing countries in the international market,” Lakhani said.

His account identifies three linked cost pressures: utility interruptions, higher power prices and petroleum-linked dye and chemical costs.

Utility interruptions raise the cost of maintaining production, while higher power prices increase the electricity burden.

Higher global petroleum prices also lift dye and chemical costs, according to Lakhani.

Together, these pressures weaken processors’ ability to fulfil export orders.

The statement did not disclose order volumes, factory headcount, production capacity or the number of mills affected.

Nor did it publish a product-level cost comparison with competing countries.

What changes is APTMA seeking?

Lakhani called for long-term, predictable energy tariffs and a review of electricity surcharges.

He also sought support for renewable energy, including solar power, plus investment in water-treatment and recycling plants.

He further asked for financing for modern technologies and wastewater-treatment systems.

APTMA’s infrastructure requests span three areas: renewable energy, water-treatment and recycling plants, and financing for modern technologies and wastewater-treatment systems.

No monetary value, financing provider, government approval, commissioning date or plant capacity appeared in the statement.

The proposals therefore remain an association agenda, not confirmed government or buyer-supplier commitments.

The report disclosed no procurement award or factory-level service agreement.

Sourcing teams cannot count a tariff reduction, new recycling plant or solar installation as available until government and processor documents confirm it.

What does the competitive claim establish?

“If the government addresses the issues of gas, water and electricity on a priority basis … Pakistan will be better positioned to compete effectively with China, Bangladesh, India and other rival countries,” Lakhani said.

APTMA presents utility reliability and input costs as the mechanism behind its claim of a price disadvantage.

The statement names three regional competitors—China, Bangladesh and India—while leaving the rest of the rival group open.

It did not provide competing-country tariffs, utility rates or comparative order data, so the claim establishes APTMA’s policy position rather than a measured cost gap.

How should buyers assess sustainability and compliance?

APTMA’s proposals include water treatment, water recycling and wastewater treatment, alongside renewable-energy support.

They concern factory infrastructure and utility sourcing, rather than product-level sustainability claims.

The statement cited no environmental law, discharge standard, certification scheme, audit method or implementation deadline for any proposal.

It also gave no mill-level compliance evidence.

Buyers should therefore track permits, wastewater performance and recycling investment as separate due-diligence items, rather than treat APTMA’s support for treatment infrastructure as proof that a particular processor meets a stated standard.

What should sourcing teams do with the information?

The immediate sourcing decision is conditional: buyers should not assume that Pakistan processors already receive lower utility costs or more reliable service.

Supplier discussions should establish the applicable electricity tariff, any surcharges, the record of gas and water interruptions, and the status of treatment and recycling investment.

No market rumour was reported alongside Lakhani’s account.

The confirmed position is narrower: APTMA has asked for government action, and Lakhani has linked utility and petroleum-related input costs to pressure on export orders.

Until tariff levels, utility service and compliance evidence are documented, sourcing teams should keep Pakistan allocations under review and avoid booking an unconfirmed cost advantage.

The policy goal is to compete with China, Bangladesh, India and other rivals; the sourcing decision must rest on factory evidence rather than that stated ambition.