Textile Council Warns of Catastrophic Impact if Gas Supply to Captive Power Plants is Cut

LNG-chain

KARACHI: The Pakistan Textile Council has urged the government to reconsider its strategy to halt gas supplies—including indigenous and liquefied natural gas (LNG)—to captive power plants (CPPs), warning it could severely damage Pakistan’s export sector, particularly textile shipments.

Council Chairman Fawad Anwar cautioned that this abrupt policy could trigger a sharp decline in large-scale and medium-scale industrial production. He noted that most CPPs lack a reliable electricity grid connection and that transitioning these gas-powered facilities to grid power would require billions of rupees and years to complete.

Anwar stressed the importance of consulting with power distribution companies, K-Electric, and exporters to fully understand the impact of this decision, which he described as “industrial suicide.” He highlighted that over 1,300 large manufacturers and exporters could face shutdowns if gas supply is cut, with dire consequences for exports, employment, and financial stability.

The council also criticized the disconnection plan, citing an apparent oversupply of LNG as the government declines Qatari LNG cargoes, contradicting the move to restrict gas for industry. Anwar further pointed out that the industry currently subsidizes gas supplies to domestic and fertilizer sectors, underscoring the need for a balanced approach.

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