PTC Slams Gas Levy as Export Shock

The Pakistan Textile Council (PTC) has strongly objected to the Petroleum Division’s enforcement of a Rs1,243 per MMBtu levy on off-grid captive power plants for December 2025 under the Off-Grid (Captive Power Plants) Levy Act, 2025, terming the measure a destabilizing fiscal intervention for Pakistan’s export-driven sectors.

According to the council, the levy has escalated sharply from Rs402 per MMBtu to Rs1,243 per MMBtu within a short span, incorporating a built-in 20% escalation clause. This abrupt increase has materially amplified operational costs for export-oriented manufacturers, particularly within the textile value chain.

PTC has cautioned that the economic repercussions are already unfolding. Reportedly, gas consumption within the export sector has declined significantly, national linepack levels have crossed critical limits, approximately 300 MMCFD of domestic gas supply has been curtailed, LNG consignments have been redirected, and gas distribution companies are encountering substantial throughput disruptions.

In its formal statement, the council observed that the levy is being imposed at a time when Pakistan is pursuing an ambitious $60 billion export target under the Uraan Pakistan initiative. It argued that the additional financial burden disproportionately affects industries that contribute directly to foreign exchange earnings, employment generation, and industrial expansion.

PTC Chairman Fawad Anwar emphasized that the imposition of a levy exceeding OGRA-notified sale prices undermines the principle of tariff certainty. He noted that executive interventions layered over regulator-determined pricing structures compromise investor confidence, obstruct risk-hedging mechanisms, impede industrial planning, and constrain project financing, thereby heightening sovereign risk exposure in an already fragile macroeconomic environment.

The council has accordingly urged the government to reinstate regulator-driven pricing mechanisms, safeguard high-efficiency cogeneration facilities, eliminate cross-subsidization embedded within commodity pricing frameworks, and recalibrate energy policy to support export competitiveness and macroeconomic resilience.