The All Pakistan Textile Mills Association (APTMA) has expressed interest in purchasing between 25 and 50 megawatts (MW) of electricity from the Punjab government, as textile manufacturers explore options to secure more affordable and sustainable energy supplies.
The proposal comes as the Punjab government considers participating as a power generator in an upcoming electricity auction covering the first 400 MW under the Competitive Trading Bilateral Contract Market (CTBCM) framework. The development could create an opportunity for industrial consumers to negotiate electricity purchases under alternative supply arrangements.
In a letter dated October 14, APTMA informed Punjab Power Development Board Managing Director Sania Awais that its members were interested in exploring business-to-business or government-to-business arrangements to procure electricity at competitive tariffs.
The association’s request reflects the importance of energy costs for Pakistan’s textile industry, which relies heavily on a consistent electricity supply to operate manufacturing facilities, processing units and other industrial equipment.
Textile manufacturers need dependable energy to maintain production schedules, manage operating expenses and fulfil domestic and international orders. High electricity costs can place additional pressure on production budgets and affect the competitiveness of locally manufactured goods in export markets.
By seeking between 25 and 50 MW from the provincial government, APTMA members are exploring whether an alternative procurement arrangement could help them obtain electricity on commercially sustainable terms. However, the final price, contractual conditions and allocation of electricity would depend on the outcome of negotiations and the applicable market arrangements.
The Punjab government is considering entering the upcoming auction as a power generator. The auction is expected to cover an initial 400 MW under the CTBCM framework, which is designed to support competitive electricity trading between eligible market participants.
Under this framework, electricity buyers and sellers can explore bilateral contracts, subject to market rules, regulatory requirements and other applicable conditions. The model is intended to introduce greater competition into electricity procurement and provide eligible consumers with additional options for securing power.
For the textile sector, participation in such arrangements could offer an opportunity to assess alternatives to existing electricity procurement methods. Manufacturers would need to consider not only the tariff but also the reliability of supply, transmission and distribution charges, contractual obligations and any additional costs associated with purchasing electricity through the market.
The potential arrangement also raises questions about how provincial power generation resources could be connected with industrial demand. Effective coordination between electricity producers, market operators and industrial consumers would be necessary to ensure that any agreed supply arrangement is practical and financially viable.
For Punjab, the proposed auction could provide a route to explore the commercial use of available generation capacity while responding to industrial demand for competitive electricity. The extent of any benefits would depend on the terms offered, the generation costs involved and the regulatory structure governing the transaction.
APTMA’s request does not, by itself, confirm that an electricity purchase agreement has been finalized. The proposed volume remains an expression of interest, and further discussions would be required to establish whether participating textile mills can secure electricity under mutually acceptable conditions.
The development comes as energy affordability remains an important concern for industrial businesses in Pakistan. For textile manufacturers, access to competitively priced electricity could influence production costs, investment decisions and export performance.
The upcoming 400 MW auction will therefore be an important development to watch for eligible electricity buyers and sellers. Any agreement between the Punjab government and textile manufacturers could provide further insight into how competitive electricity trading may support industrial energy requirements in the province.