ISLAMABAD: The Commerce Ministry is on toes for getting approval of Textile Policy 2020-25 from ECC and unless and until the textile policy is approved and implemented the massive increase in exports is not possible, Adviser to Prime Minister on Commerce, Textile Abdul Razak Dawood stated this to The News here on Thursday.
The adviser said that he himself is trying from pillar to post to get notified the regional tariff of electricity and gas for the export industry for the current fiscal 2020-21 and the demand of the textile sector for continuation of the regional tariff for next three years is quite justified.
He said that Prime Minister Imran Khan has already accorded approval to Textile Policy 2020-25 in terms of policy directives on production and diversification of exports. However, the ministry is working on the processes and procedures on how to implement the Textile Policy and ensure the dividends out of it.
To a question Dawood said that in the last fiscal 2018-19, he managed to get notified the regional electricity and gas tariff for the export sector at 7.5 cents per unit and $6.5 per MMBTU respectively. He said that he is also trying his best to get notified of the same regional tariff for the export industry for the current financial year 2019-20.
However, top sources said that Commerce Ministry is to soon prepare a summary for ECC seeking the approval of regional tariff of gas at $6.5 per MMBTU and electricity tariff at 7.5 cents per unit for the current financial year 2020-21. Power Division also prepared the summary which has been asked by the authorities to withdraw and instead Commerce Ministry will pitch the summary in ECC to this effect.
Meanwhile Shahid Sattar, Executive Director of All Pakistan Textile Association (APTMA) said that approval of the Textile Policy 2020-25 is a key to accelerate the textile exports in a big way, but it has not yet been approved by ECC and Federal Cabinet despite the fact that prime minister has approved it many months back. He said that textile exports have increased by 14.5 percent in the month of July, 2020 while overall exports have increased by 5.8 percent and if the textile policy is approved and implemented then the sky is the limit in terms of jacking up the exports.
He said that the electricity bills which the textile industry are currently being sent by DISCOs at Rs24 per unit against the agreed tariff of 7.5 cents per unit. He said if the textile policy 2020-25 is approved, then for next three years, the electricity and gas tariff will be at regional level which will help increase massively the textile exports of the country, but the current situation has created uncertainty in the sector. “The approval of textile policy is the only way to ensure more investment in textile sector as huge investment is in the pipeline but is awaiting the approval of textile policy.”