The ministry of textile industry has finalised recommendations for saving textile sector from negative impact of power and gas loadshedding, seeking complete exemption from loadshedding, freezing power tariff for at least six months and changing rates of duties.
According to a brief of the ministry presented in a meeting of the National Assembly Committee on Textile Industry, the above agenda items relate to energy crisis for which briefing will be made by the respective departments. In the last meeting of the National Assembly Standing Committee on Textile Industry held on May 23, 2012, inter alia, the following two decisions relating to the ministry were taken: the committee unanimously recommended that a comprehensive report be submitted to the next meeting on the suggestion/proposals of the representatives of association on the crises of power.
The chairman had directed the ministry to send copies of suggestions incorporated in the budget proposals and arrange meeting with concerned ministry and implementation of Textiles Policy 2009-14. The Textile Industry is the base line of national economy and textile exporters are the biggest stakeholders in foreign exchange earnings for the country in keeping the industrial wheel running, generating employment and promoting exports.
To bring textile industry back on track, textile associations have made following recommendations ie industrial units should be exempted from electricity load shedding, fuel adjustment surcharge should be abolished, uniform rate of equal surcharge (2 percent) should be charged across the board, MDI surcharge should be abolished during loadshedding hours and electricity tariff should be frozen for six months.
Ministry of Textile industry has also circulated Gas Summary for ECC of the Cabinet to Ministries/Divisions for their views/comments. As soon as comments of Ministry of Petroleum and Natural Resources are received, summary will be submitted to the ECC of the Cabinet.
The ministry had asked different textile associations to submit their proposals for inclusion in the Budget 2012-13, resultantly a number of proposals were received from them. The ministry had requested the FBR to consider the following proposals in the Budget 2012-13. Shifting of section mentioning item 1 (polyester chips HS code 3907.6010) in column 2 of schedule XII from SRO 212 (l)/2009 to SRO No 209(l}/2009 as it belongs to textiles value chain. Revision of duty drawback of textiles value chain. Addition of text "/filament" after the word fibre in item No 1 of column 2 of Schedule VI of SR0 209(l)/2009.
Addition of code 5402.4700 in item No 1 of column 3 of Schedule V1 of SO 209(l)/2009. Replacement of text 'repayment of customs-duties to the extent specified in column (5) of the Schedules below, paid on the importation of new materials" with "payment of drawback to the extent specified in column (5) of the Schedule below on the raw materials" in the para 1 of SRO 212(!)/2009. Change in PCT and Customs Duty.
The ministry has requested the FBR to intimate as to which of the proposals have been incorporated in the Budget 2012-13. Response from FBR is still awaited. However, it is encouraging that Finance Division has allocated Rs 10 billion for Export Investment Support Fund in the budget 2012-13. As per previous practice, the ministry would be getting Rs 7.5 billion or less.
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