ISLAMABAD: Adviser PM on Commerce, Textile, Industries & Production and Investment Abdul Razak Dawood assured textile industry representatives of taking up with Prime Minister Imran Khan the issue of non-implementation of energy package and getting it resolved once for all.
During the meeting, All Pakistan Textile Mills Association delegation agitated 12 issues including the non-implementation of energy package in true spirit. In the meeting, Commerce Secretary Sardar Ahmad Sukhaira was also present in the meeting, a senior official who was part of the meeting told The News.
APTMA, in the meeting, he said, demanded long-term textile policy arguing that Pakistan’s exports, which have shown remarkable progress of 26 percent in volume terms and are set to contribute an addition of $2 billion to the export of country, will lose their competitive edge because of non-implementation of the agreed energy tariffs, non-availability of raw material and credit squeeze due to severe issues with the new GST refund system as well as the extremely high rate of 17 percent GST.
“This all is jeopardising investment and increase in quantity and price, the official quoted APTMA as saying. APTMA said despite passage of 11-month, regionally competitive energy tariffs have not been implemented by the Ministry of Energy. It said that 7.5 cents all-inclusive tariff committed by cabinet is not being implemented since July 2019 and
additional 25 percent as quarterly adjustment and other charges are being billed. Karachi Electric still charging MDI since January 2019 despite clarification. Inexplicably KE is not charging quarterly adjustments and creating a market distortion.
APTMA also brought into notice of Adviser that factories in the Lasbela Industrial Estate Development Authority (LIEDA) are not being extended the facility ab-initio.
It also mentioned in the meeting that $6.5/MMBTU gas is still being billed at $11 by SNGPL with constant threats of disconnection.
And industry is still operating on stay orders despite repeated and countless meetings to resolve the issue. It also highlighted saying that there is still no mechanism for addition of new units for special energy rates representing expansion increase in capacity despite passage of 5 months.
Razak Dawood extended assurance to APTMA delegation saying that he will take up the issue of energy package with the premier and will try to get it resolved, as under the given situation on energy package front, it is not possible for export industry to work smoothly.
APTMA also urged the government, according to the official in Commerce Ministry, to do away with the duty on cotton from January 1, 2020 saying that this year cotton crop has failed drastically and a total of less than 9 million bales are likely to be the final production figure. “Under these circumstances, the industry requires a mammoth 6 million bales plus of imports to maintain even last year’s production and export levels. Under this circumstance, the summary to the ECC or Cabinet for removal of duties/sales tax may kindly be moved urgently, APTMA pleaded. The adviser on Commerce and Textile responded positively on this account.
APTMA also sought extension in cotton import from Mozambique, Mali and Tajikistan via Torkham mentioning that the ECC of the Cabinet had decided to allow import of cotton for one year from Torkham Border in its meeting held on November 2018. This import has been a very big relief for the textile industry because it not only reduced the cost of imported raw material, but the quality of this cotton was far superior to Pakistani cotton and could be used to produce a better yarn.
APTMA mentioned saying that it requested many times in its letters for extension in time for import of cotton from Afghanistan, Mozambique, Mali and other Central Asian countries for a period of 5 years to ensure smooth flow of raw material. APTMA also requested to move a summary to ECC for approval of the proposals but now customs authorities have stopped processing cotton from Torkham border. Meanwhile, the Plant Protection Department (PPD) has visited Afghanistan and submitted a report clearing the imports. In the meeting, commerce ministry’s top mandarins headed by Adviser Razak Dawood also promised to bail out textile industry to this effect.
APTMA also flagged the issue of import of Indian cotton from Oman and asked for banning it. It also mentioned that yarn imported from Oman is not of Omani origin and it should be banned Indian yarn.
