Export-oriented sectors: PHMA for continuation of concessional rates of power, RLNG

KARACHI: The city’s export industries on Wednesday expressed concern over discriminatory tariffs and distribution of RLNG and electricity and said that the federal Energy ministry has failed to ensure the uniformity for the utilities on a single rate across the country.

Pakistan Hosiery Manufacturers and Exporters Association (PHMA) dispatched a letter to the federal Energy ministry to ensure the implementation of uniformed rate for the utilities to the Karachi’s five export-oriented sectors.

A copy of the letter has also been made available to the Business Recorder, seeking the enforcement of a decision made by the cabinet’s Economic Coordination Committee for continuation of concessional rates of RLNG and electricity to five export-oriented sectors for the fiscal year 2021-22.

Similarly, Pakistan Apparel Forum (PAF) has shown reservations over the “sheer discrimination” by the Ministry of Energy, (Petroleum Division), alleging it for the ECC summary on RLNG tariff at $6.5 per MMBTU to export-oriented sectors in 2021-22 that is applicable across Pakistan.

On the contrary, the PHMA letter said, several of its exporters from Karachi have only RLNG connections without gas supplies while the SSGCL is charging them $12.68 per MMBTU for the utility.

It said that the “exorbitant” tariff for the RLNG took away the competing leverage from Karachi based industries, contributing some 51 percent in the country’s total exports.

“Hence, the issuance of implementation advise to only SNGPL is the partial compliance to supply RLNG only to industries of Punjab which are generating 43 percent of total exports,” the letter said.

Similarly, the PAF also claimed that the concessional rates of RLNG have never applied to the export industries of Karachi since the ministry has not issued advice to the SSGCL to enforce the uniformed tariffs.

“Surprisingly the export industries had been deprived of concessional tariff of RLNG which generates 51 percent of total exports and 55 percent of value added textile exports,” it said, asking the ministry to ensure the utility at $6.5 per MMBTU to the city’s industries.

The PHMA asked the ministry to implement the ECC decision and issue orders to the managing director of Sui Southern Gas Company Limited (SSGCL) to ensure a complete compliance and facilitate the export industries across Pakistan.

Copyright Business Recorder, 2021