By SKM
March 04, 2026
ISLAMABAD: Pakistan’s textile sector, the country’s largest export industry, has raised urgent concerns over looming energy shortages caused by the ongoing geopolitical crisis in the Strait of Hormuz. The All Pakistan Textile Mills Association (APTMA) warned that disruptions in oil and LNG shipments are pushing energy prices higher, threatening both industrial production and the competitiveness of Pakistan’s exports.
In a letter to Commerce Minister Jam Kamal Khan on March 4, 2026, APTMA highlighted the dual impact of the crisis: while the dollar cost of energy imports is rising sharply, export industries are simultaneously at risk due to higher production costs. “Even if regional tensions stabilize, energy supply chains and prices are likely to remain volatile for several months,” said APTMA Chairman Kamran Arshad.
The association urged immediate government action to safeguard the export sector. Key recommendations included the temporary suspension of the Carbon Levy and Petroleum Development Levy on residual fuel oil (RFO), making it a viable option for captive power generation in export industries. It also called for the removal of caps on domestic gas production and the allocation of additional gas to the power sector, reducing reliance on imported LNG, particularly from Qatar, whose supply is under strain.
APTMA emphasized that these measures are essential to maintain energy availability for textile mills and other export-oriented industries, prevent production slowdowns, and stabilize Pakistan’s export earnings during the crisis. The letter also noted that timely action could mitigate the risk of widening the current account deficit caused by rising energy costs.
Energy analysts have warned that failure to implement these measures could lead to power shortages or prohibitively high energy costs for export industries, slowing industrial growth and undermining Pakistan’s position in global textile markets. APTMA has also sent copies of the letter to the Federal Ministers for Power and Petroleum, as well as senior Commerce Ministry officials, stressing the need for coordinated, urgent intervention.
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