ECC to give final approval today: govt agrees to cut power price for textile sector

The government has agreed to reduce the electricity price by Rs 3 per unit and provide enhanced supply of natural gas to the textile sector to increase exports by making them competitive in the international market.
An agreement reached between Finance Minister Miftah Ismail and a delegation of All Pakistan Textile Mills Association (APTMA) was announced at a joint media briefing with the finance minister stating that the Economic Coordination Committee (ECC) will give final approval to the agreement today (Thursday). The agreement included Rs 3 per unit cut in electricity price and increase in the share of natural gas for Punjab-based industry to 42 percent, however, issue of immediate release of pending refunds remained unresolved as the government has already announced mechanism for payment of pending refunds in installments. The finance minister had announced in his budget speech that pending refunds of exporters will be paid in the next fiscal year in various installments starting from July 2018.
The finance minister added that exporters' basic demand was to provide them supply of natural gas (42 percent) for three days a week during Ramazan because LNG is becoming an expensive input for them and making their exports uncompetitive in the global market. He further stated time period for reduced price of electricity with reduction of Rs 3 per units allowed to exporters had expired and a committee was constituted by the Prime Minister on the matter and committee accepted to continue the reduced price of electricity for textile sector, he added. The minister said this would be formally approved by the ECC today (Thursday).
Gohar Ejaz, who headed APTMA delegation in the meeting with finance minister and subsequently with Speaker National Assembly Ayaz Sadiq, told media persons that textile sector is also facing liquidity problems because its refunds have not been processed for one-and-a-half-year and the pending refunds of the industry up to December 2016, including Rs 40 billion of the industry and Rs 10 billion of the textile sector, are yet to be paid.
"We had been asking the government to pay the refunds where refunds orders have been issued." Additionally, he stated, the government has not paid the rebate on exports to the industry announced in the textile package for one-and-a-half-year and consequently liquidity problem of the textile sector increased because under the export package the industry was selling an item of Rs 100 at Rs 90 on the promise of rebate. The government promised 7 percent rebate on exports and the exporters increased exports by 18 percent, but they did not get rebate, he said adding that industry was told that 10 hour load-shedding will be carried out in Ramazan and finance minister has been requested to reconsider it for the industry.
The finance minister further said that due to climate change and water shortage, Tarbela dam is producing 1500MW less electricity compared to the last year and 2500MW less electricity if compared to 2013.
The finance minister said that the availability of natural gas would be increased to 42 percent from 28 percent i.e. from two days to three days a week. Further ECC is scheduled to meet on Thursday and government would extend the facility of reduction in electricity rate by R 3 per unit announced by the former Prime Minister Nawaz Sharif.
Ismail said that textile industry demanded that they might be given second priority after the domestic consumers, which is their genuine demand and the government would try to fulfil it.
Talking to media persons outside the Parliament House, APTMA officials reminded the Pakistan Muslim League (Nawaz) that Punjab is its strong vote bank and the government should fulfil their genuine demands and promises made with them. They further said the government is well aware of the industry problems but is not taking decision for their solution.