The Economic Co-ordination Committee (ECC) decision to reduce gas tariff for captive power producers from 68 percent to 31 percent will have positive impact on textile sector. This was stated by Islamabad Chamber of Commerce and Industry (ICCI) President Muhammad Ijaz Abbasi while commenting on the ECC's decision to cut gas tariff for IPPs on Wednesday.
He said textile sector was disappointed over the Federal budget 2008-09 as it did not carry any incentives for the industry while 68 percent increase in gas tariff for their captive power plants had even jeopardised textile industry's viability. He appreciated the government's step to provide some relief to textile industry by reducing gas tariff for their captive power plants.
ICCI President said textile sector has provided job opportunities to about 15 million people, which is more than 38 percent of the workforce, and contributes over 60 percent in country's export, amounting to around US $5.2 million.
Abbasi said textile sector has great potential to grow and expressed optimism that textile exports could be doubled in next five years if a level playing field is provided to the industry. He also called for evaluating the impact of current price hike of the petroleum products, gas and electricity on the poor segment of society so that a strategy could be evolved to protect them.
ICCI President said phenomenal increase in prices, particularly of food items and power tariffs has badly reduced the purchasing power of common man. He said increase in GST has also spiked inflation and enhanced cost of doing business, thus increasing woes of people and making our exports uncompetitive in international markets. Abbasi urged the government to review these measures to provide relief to the people and to enhance country's exports.