The All Pakistan Textile Mills Association (APTMA) has cautioned that Pakistan’s export and industrial sectors face growing risks as geopolitical tensions in the Strait of Hormuz disrupt oil and liquefied natural gas (LNG) supplies, pushing up energy prices and threatening power security.
In a letter addressed to Commerce Minister Jam Kamal Khan and other key officials — including Energy Minister Awais Ahmed Khan Leghari and Petroleum Minister Ali Pervaiz Malik — the association urged immediate government intervention. It called for suspending levies on fuel oil and increasing domestic gas production to ensure energy availability and preserve export competitiveness.
“We write to draw your urgent attention to the ongoing geopolitical crisis in the region and the disruption of shipping through the Strait of Hormuz. This situation is constricting the supply of oil and LNG to Pakistan and poses serious risks for the power sector and for the industry’s energy security,” the letter stated.
APTMA highlighted that surging energy prices are likely to expand Pakistan’s current account deficit, while uncertainty over supply continues to loom.
“At the same time, higher energy costs will directly affect the competitiveness of the export sector. This creates a double impact on the economy: the dollar value of imports will rise significantly while exports, which are already under pressure, will face further risk,” APTMA warned.
The association expressed concern that even if the conflict eases in the coming weeks, supply chain disruptions and elevated energy prices could persist for months, posing a sustained threat to export industries.
APTMA called on the government to immediately suspend the carbon levy and the petroleum development levy on residual fuel oil (RFO).
“This would make RFO a financially viable option for captive power generation for export industries. Given the current disruption in international supply lines, export of surplus RFO is also unlikely in the near term, ensuring sufficient supply in the domestic market,” it said.
In addition, the association urged the removal of production caps on domestic gas fields and the allocation of additional local gas to the power sector.
“The power sector currently relies heavily on imported LNG, particularly from Qatar, whose supply is facing serious disruptions in the present crisis. In this context, increased production from domestic gas fields and its allocation to the power sector would allow greater power generation from local resources and help reduce reliance on the uncertain supply of expensive imported LNG during the current crisis,” the letter added.
APTMA stressed the need for swift government action to prevent further erosion of Pakistan’s export earnings at a time of mounting external pressures.
