Textile Sector Calls for Competitive and Reliable Power Market Reform

Pakistan’s power-market reforms must deliver a commercially viable, reliable and transparent electricity system to support the competitiveness of the export-oriented textile sector, stakeholders said at an industry dialogue in Faisalabad.

 

The discussion, organised by Alternate Development Services (ADS), brought together textile manufacturers, energy professionals, sustainability experts, business representatives and renewable-energy stakeholders. Participants examined the impact of power-market reforms and the energy transition on industrial competitiveness, with a focus on competitive electricity procurement, energy security, ESG compliance and decarbonisation.

 

ADS Energy Transition Officer Muhammad Usman Bin Ahmed outlined opportunities for industrial consumers under the Competitive Trading Bilateral Contract Market (CTBCM), including bilateral contracts, competitive procurement and electricity wheeling. Discussions also covered Use of System Charges (UoSC), security guarantees, balancing and settlement mechanisms and firm-capacity requirements for renewable energy.

 

According to the discussion, NEPRA’s September 2026 determination sets effective UoSC at Rs9.46 per kWh for B-3 consumers and Rs12.32 per kWh for B-4 consumers, including a Rs3.23 per kWh Distribution of Subsidy Surcharge.

 

Participants also highlighted concerns around grid capacity, metering, transmission constraints and the need for greater predictability to encourage industrial participation in the competitive power market.

 

FPCCI Energy Advisory Committee Head Rehan Javed pointed to rising generation costs, while sustainability specialists stressed the importance of digital traceability, lifecycle data, verification and credible environmental reporting.

 

Stakeholders said industrial decarbonisation should begin with energy efficiency, process optimisation and waste-heat recovery, followed by renewable energy, electrification and storage where commercially feasible.

 

The participants concluded that simply opening the electricity market would not be sufficient. For the reforms to support textile exports, the system must provide reliable, transparent and economically viable energy while enabling greater renewable-energy integration and industrial decarbonisation.