Pakistan: Pakistan Govt. promises cheap energy supply to textile industry

The Federal Government of Pakistan has promised to further slash prices of gas for the textile industry of the country, in order to minimise production cost for the manufacturers to the highest level. This was announced by State Minister for Finance Rana Muhammad Afzal Khan while addressing a meeting at All Pakistan Textile Processing Mills Association (APTPMA) in Faisalabad on January 22, 2018.The meeting was also attended and addressed by APTPMA members Aftab Ahmad, Engineer Rizwan Ashraf and Engineer Ehtisham Javaid.

According to the Minister, apart from offering weighted average price of RLNG (Regasified Liquefied Natural Gas) across the country, the Government is planning to offer electricity at Rs. 7 per unit to the textile industry.The announcement was made after APTPMA Chairman Sheikh Khalid Habib raised the matter on how hard the high energy cost is hitting the textile industry in Pakistan. It resulted in the migration of business to other manufacturing hubs such as India, China and Bangladesh, he added.

Further, the imposition of sales tax on coal has made it compulsory for textile unit owners to go through the refund claim system. In view of the inconvenience faced by the textile traders, the Government is considering to kick-start an easy process of ‘zero-rated’ coal for the textile industry so they (manufacturers) do not need to go for the sales tax refund claim process anymore in future.The Minister also emphasised on the need of expansion of Faisalabad Airport as the city is known as the ‘textile capital’ apart from being the third largest town in the country. This will ease the export rush at the airport.


Source: Business Recorder, Pakistan
Wednesday, 24 January 2018

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