Remove curbs on extra power utilisation for SMEs: PRGMEA

25 Nov '20

2 min read

Pic: Shutterstock

Pakistan’s apparel sector recently appealed to Prime Minister Imran Khan to revise the awaited notification of the government’s recent energy relief package and remove the restriction on additional utilisation of electricity to make the package more comprehensive and attractive for small and medium enterprises (SMEs), which comprise over 90 per cent of the industry.

Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) central chairman Sohail A Sheikh and chief coordinator Ijaz Khokhar, in a joint statement, urged the concerned departments to issue the notification after necessary amendments.

Sheikh said electricity rates are high in Pakistan and it is for the first time that power rates are being reduced, according to Pakistani media reports.

He said the export-oriented industry has been facing multiple challenges in the wake of high cost of manufacturing, exorbitant utility tariffs and high labour wages.

Khokhar said doubts regarding the International Monetary Fund’s loan has also been affecting business confidence as economic managers would have to devise a clear road map on power sector and revenue reforms committed to the IMF for continuation of the loan ahead of the next budget.

The industrial relief package had reportedly initially involved around Rs 350 billion over three years but was later amended to avoid completely derailing the IMF programme.

Fibre2Fashion News Desk (DS)

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