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January 26, 2020

Exporters concern over taxes, surcharges on power supply

Peshawar

January 26, 2020

FAISALABAD: The Pakistan Textile Exporters Association (PTEA) has expressed concern over imposition of taxes and fuel adjustment surcharges on power supply as it will negatively hit the export growth.

In a statement here on Saturday, Pakistan Textile Exporters Association chairman Sohail Pasha expressed his disappointment over Power Division’s decision terming it anti-export move.

This unwarranted action would precipitate a crisis in the textile industry which was delivering on its commitment to enhance exports, he lamented. Quoting the ECC decision, he said that it was clarified that all elements (financial cost surcharge, Neelum-Jhelum Surcharge, taxes, fixed charges, quarterly tariff adjustment and fuel price adjustment) would not be charged to the zero-rated sectors. This had resulted in substantial quantitative increase in exports; however, barely a year later, the Ministry of Energy instructed Discos to charge add-ons and surcharges raising the aggregate cost to 13 cents per unit, he continued.

How would exports when subjected to 13 cents/KWh expected to compete with those from India and Bangladesh at 7-9 cents/KWh and China between 7.5-10 cents/KWh and how exporters would pay the difference of tariff arising from the retrospective effect when it was not factored into the price of exports already made, he questioned. He demanded the government fulfill its commitment of regionally competitive energy of 7.5 cents/KWh all-inclusive and withdraw the decision of imposition of surcharges, taxes and fuel adjustment on power supply to export-oriented sectors as it would reverse the growth in exports.

PTEA patron-in-chief Khurram Mukhtar said that with a view to increase the investment and broaden the industrial base, the State Bank had enhanced financing limits for exporters under the subsidised loan schemes including Export Finance Scheme (EFS) and Long Term Finance Facility (LTFF), however, the same had not yet been implemented. Financing limits for exporters under LTFF and EFS had been burst and banks were reluctant to award financing facilities, he told. This had created immense problems for textile exporters as in absence of finance, they were unable to expand their export turn over. He demanded the State Bank direct the commercial banks to ensure availability of financing limits under Export Finance Scheme and Long Term Financing Facility to exporters in accordance with sanctioned lines. Similarly, extreme cash flow crunch had squeezed the financial streams as major portion of exporters’ working capital is stuck in custom rebate regime creating severe financial stress, he added.

Factory worker burnt alive: A worker was burnt alive in a cotton factory at Small Industrial Estate, Sargodha Road, on Saturday.

The fire erupted in the factory due to short circuit and burnt cloths worth millions of rupees within no tine. In the meantime, a factory worker was also burnt alive. Later, the building collapsed.

12 SHOPKEEPERS HELD: The Civil Defence Department teams conducted raids and arrested 12 shopkeepers for selling petrol illegally and decanting. The included Usman, Imran Ahmad, Hassan Ali, Muhammad Akram, Faisal and Sadiq Ali.

Rana Muhammad Abbas, District Officer of the Civil Defence Department, told The News that during the last one year, the Civil Defence teams nabbed 243 shopkeepers for selling open petrol while 500 shopkeepers were arrested for decanting.

MUHARRAR SACKED: City Police Officer Muhammad Sohail Chaudhry conducted a surprise raid at Sandal Bar police station on Saturday and sacked Muharrar for not updating the official record. He also issued show-cause notice to the SHO. The CPO also inspected the record of Front Desk and Police Record Room and found that some important complaints lodged with this police station were kept pending without any justification.

22 LADY WORKERS INJURED IN ACCIDENT: As many as 22 lady workers of a Khurrianwala textile mill were seriously injured when their bus collided with a dumper on Saturday.

The injured workers were on their way to their mill when their bus collided with the dumper. The injured were identified as Saba Saleem, Nabila, Sonia Anwar, Zunaira, Sadia, Shamim Mushtaq, Sidra, Neha Anwar, Roomi Zulfiqar, Sadia, Shamim Mushtaq, Parveen Akhtar, Shaista Shafique, Inayat Bibi, Saba and Parveen Manzoor.