ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) has expressed disagreement with the Federal Board of Revenue’s (FBR) estimate on the cross-subsidy embedded in industrial power tariffs, claiming that the actual figure is significantly higher than reported by the government.
In a letter to Power Minister Sardar Awais Khan Leghari, APTMA Secretary General Shahid Sattar rejected the FBR’s calculation of Rs 74 billion, stating that based on the National Electric Power Regulatory Authority (Nepra)’s determination for fiscal year 2026, the true cross-subsidy amount is at least Rs137 billion.
APTMA pointed out that its calculations, using FY25 consumption data, showed a cross-subsidy burden of nearly Rs140 billion, which could rise by 2–3% based on future demand growth.
The dispute centers on how cross-subsidies are calculated. APTMA asserts that the subsidy should be based on the actual cost of service for each consumer category, rather than a generalized average, as used in the government’s figures.
The industry body has consistently advocated for a regionally competitive power tariff of 9 cents/kWh, supported by regional benchmarks and domestic cost-of-service studies.
APTMA also raised concerns about the current wheeling charges, which it believes undermine the viability of the Competitive Trading Bilateral Contract Market (CTBCM) for renewable energy.
It further emphasized the need for tariff predictability to aid long-term business planning, especially for exporters.
In addition to tariff issues, APTMA acknowledged the government’s new incremental consumption package as a positive step, but urged for more flexibility in the Time of Use (ToU) tariff structure to better meet industry needs.
