Finance Minister Asad Umar has assured Pakistan Weaving Mills Association (PWMA) of low-cost Regasified Liquid Natural Gas (RLNG) for Sindh industries. According to Yousuf Yaqoob, chairman, PWMA this assurance was given by the minister during a meeting with the delegation of PWMA that met him in Islamabad this week.
Minister of State for Revenue, Hammad Azhar was also present in the meeting. Tahir Romi, Senior Vice Chairman, Irfan Moton, Faraz Pervez, Danish Jawed and Haseeb Ahmed Polani represented the association. Yousuf said during meeting issues relating to textile particularly weaving industry were discussed in detail and the representative of the association demanded measures to reduce the cost of production.
The finance minister also assured reduction in tariff of imported RLNG from $13.5 per MMBTU to $6.5 MMBTU for Sindh industries, he added. Giving a presentation on issues, the association urged the Finance Ministry to address the cost of doing business in Pakistan for five zero rated sectors to enhance the country's exports. The government needs to address other issues especially for the SME sector, which is the source of export growth and job creation for the future, Yousuf said.
"These issues being faced by industry, if resolved, we assures establishment of hundreds of new weaving units all over Pakistan as well as expansion of the existing ones, adding 50,000 plus skilled and unskilled workers, and adding approximately $2 Billion Dollars of textile exports over the next five years," he added.
He urged that the Gas and electricity rates policy for the Five Zero Rated Sectors of 6.5 cents and 7.5 cents respectively should be implemented in its true letter & spirit for all the units registered under five zero rated sectors regardless of the province they are located or the date of establishment, or the date of Connection of Utilities.
He said that there should be an even playing field for all the players regardless of where the company is being set-up. New Weaving unit in Punjab or Sindh should be supplied RLNG or power at 6.5 cents or 7.5 cents respectively, he demanded.
"Proposal of collecting 50 percent of past GIDC levy shall be taken back immediately as the SMEs, indirect exporters and small units, who made the fabrics for exporters at a small scale never included this cost, never charged from their buyers, and they did not even receive any DLTL or any devaluation benefits to offset the cost," he maintained.
Chairman PWMA said that the special facilities of DTRE/Custom Bond and Long Term Finance Facility (LTFF) should be extended to indirect exporters and small exporters (exports less than $5 million) to create an even playing field with big exporters.
They asked for forming a committee of all the stakeholders, namely the State Bank, the FBR, customs & textile associations, to devise a mechanism whereby allowing these facilities to the small and indirect exporter.