Government will rationalize energy tariffs within two weeks: APTMA team meets Umar

Federal Minister for Finance, Revenue and Economic Affairs, Asad Umar has assured the textile sector of rationalizing energy cost within two weeks to implement exports-led growth policy. This was claimed by Chairman All Pakistan Textile Mills Association (APTMA) Aamir Fayyaz who led a delegation that called Finance Minister Asad Umar. Advisor to Prime Minister on Textile, Commerce, Industry & Production and Investment Abdul Razak Dawood was also present on the occasion.
The APTMA discussed various issues relating to gas and electricity pricing, proposed withdrawal of customs duty and sales tax on import of raw materials, sales tax refunds, extension of duty drawback scheme for 5 years and maintaining market-based exchange rate.
Fayyaz told Business Recorder that the finance minister was appraised of high energy cost which is hurting export sector. Before the general election 2018, Pakistan Tehreek-e-Insaf (PTI) had announced to revise electricity prices downward to USc7.5/KWh, if voted to power. Further it also announced for a uniform gas rate across the country at rate of $6.5/mmbtu.
"The finance minister informed the delegation that the government stands by its commitment and would rationalize energy tariffs within two weeks," said the APTMA chairman, adding that they are satisfied and hopeful that industry's major concern would be addressed soon.
The Textile Division has also proposed Prime Minister Imran Khan to reduce the cost of doing business across the textile value chain, ie electricity and gas prices. It has been proposed that tariff rationalization surcharge currently at Rs 3.10/KWh and financial surcharge at Rs 0.48/KWh may be withdrawn.
According to the Textile Division's presentation, the RLNG depends on international prices and are currently at Rs 1,600 MMBTU while the system gas available in Sindh and KPK are at Rs 488-Rs 600 per mmbtu. Disparity in gas price vis-à-vis system gas and RLNG is one of the major issues.
Umar informed the delegation of the economic challenges of the government, but said that different options are under consideration to facilitate the export sector. The delegation hoped that the new government will take decisions in the interest of industrial sector after incorporating the feedback from the respective sectors. The finance minister told the delegation that it is his foremost priority to support the export-oriented sectors of the industry in any way possible and in this regard all possible cooperation will be provided from the government.
According to the statement of the Finance Ministry, the finance minister assured the delegation of his full support to uplift this export-oriented sector on the condition that the sector will fulfil its obligations for increasing exports bringing in much needed foreign exchange and will not in any case be helpful to anyone involved in tax evasion.
The minister said that the news relating to increase in gas and electricity tariff has been misreported in the media, adding that, so far, no such decision has been taken by the government. He said that the Ministry of Finance will fully support the recommendations of the advisor textile and commerce in all industry related matters.