KARACHI: President of North Karachi Association of Trade and Industry (NKATI) Faisal Moiz Khan, while expressing serious concerns over discontinuation of the zero-rated industrial (ZRI) package for the export sector under the pressure of the International Monetary Fund (IMF), has rejected the federal cabinet’s decision.

In an appeal, NKATI president requested Prime Minister Shehbaz Sharif and Federal Minister for Energy Khurram Dastgir Khan to withdraw the decision to discontinue the ZRI package for zero-rated industries in the best interest of the country’s economy. Otherwise, it will have a devastating impact on export sector, especially small and medium industries (SMEs) including textiles.

“SMEs would not be able to bear the burden of expensive electricity, and it is feared that SMEs will be shut down, which will not only affect exports but also leave millions of workers unemployed.”

He pointed out that after the approval of the federal cabinet, the Ministry of Energy Power Division has notified the discontinuation of the ZRI package for export sector at the rate of Rs 19.99 per kWh (all inclusive) effective from March 01, 2023.

Faisal Moiz appealed to the Prime Minister Shehbaz Sharif and Federal Minister Energy Engr Khurram Dastgir to withdraw the federal cabinet decision and implement economy, industry-friendly measures, saying that the high dollar rate, closure of LCs, delay in clearance of consignments at the ports, electricity, gas high tariff the production cost of industries has already increased enormously, which has adversely affected the production activities.

Copyright Business Recorder, 2023