All Pakistan Textile Mills Association (APTMA) has requested Prime Minister Shahid Khaqan Abbasi to formulate a long-term policy on textile exports to attract investment in the sector and boost the sliding exports.
Sources in the industry told Business Recorder after having a meeting with the Prime Minister - who directed the Commerce Ministry to come up with recommendations based on exporters' input within 30 days - that investors are reluctant to invest in the country unless they are given assurance that there would be no change in the policy for five years. They added that representatives of APTMA have convened to the Prime Minister of the importance of continuity of policy for the next five years.
Meanwhile, a statement issued by the Prime Minister office stated that Shahid Khaqan Abbasi had a meeting with a delegation of APTMA. Finance Minister Ishaq Dar, Commerce Minister Pervaiz Malik, Special Advisor to Prime Minister on Revenue Haroon Akhtar, Miftah Ismail and senior officers of relevant divisions were also present during the meeting.
The delegation appreciated the efforts of the government for ensuring energy security in the country, especially for the industrial consumers.
The Prime Minister reiterated the commitment of the government to continue undertaking all possible measures, including policy initiatives, to create an enabling environment for the businesses to grow and making Pakistani products more competitive in the international market. The delegation also presented various proposals aimed at increasing exports and thereby reducing trade deficit of the country. While responding to the proposals, the Prime Minister observed that the government is prepared to work on any proposal which can ensure a tangible increase in exports, as it will provide for twin advantages of reducing trade deficit and increasing employment. The Prime Minister directed the minister for commerce to sit with the exporters and come back to him with firm recommendations based on empirical evidence.
When asked about the proposals presented by the APTMA officials to the Prime Minister, they stated, "We demanded the Prime Minister to waive surcharges of Rs 3.53/kWh to bring the tariff to Rs 7/kWh from the current Rs 10.5 /kWh and gas price to Rs 600/mmbtu for the exports sector."
"We have also requested that system gas/RLNG is burdened with various incidentals such as GIDC/UFG, cost of supply, etc. Exporting industry cannot pass on these system inefficiencies to the international buyers," they further said.
The government was urged to reduce high cost of doing business by taking measures including five exporting sectors, which are zero rated by FBR, should also be zero rated for surcharges of Rs 3.53/kWh to bring the tariff in line with regional competitors. Electricity tariff should not be more than Rs 7/kWh, they demanded. Furthermore, RLNG and system gas be provided at uniform price to industrial consumers both for captive & processing use across the country at the rate of Rs 600/mmbtu.
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