The Pakistan Petroleum Ministry’s proposal to slash the gas infrastructure development (GID) surcharge by 50 percent has been welcomed by the textile exporters of the country.
The textile exporters believe that the reduction in GID surcharge would help them reduce the cost of production of exportable goods, said Rana Arif Tauseef, Chairman Pakistan Textile Exporters Association (PTEA).
Mr. Tauseef said textile industry is the only ray of hope for revival of the nation’s economy, which is presently in doldrums owing to high cost of doing business.
Exporters from countries with low energy cost and where producers enjoy special exemption are extending tough competition to the country’s textile industry at international front, he added.
The high gas tariffs have also impacted the value-added textile industry of Pakistan, owing to which textile and garment exports from the country slumped from previous fiscal’s US$ 13.78 billion to US$ 12.35 billion during last fiscal, he said.
Energy crisis was the main reason for fall in textile exports as 40 percent of the industry’s production capacity remained underutilized or unutilized, Mr. Tauseef said and called on the Government to ensure regular and adequate supply of power and gas to the textile industry in broader interest of the industry as well as textile exports.
He said to tap better growth, the Government should ensure regular supply of power and gas to the industry, reduce utility tariffs, reduce interest rates to single digit and improve law and order situation in the country, so as to allow the national economy to experience a turnaround.
Fibre2fashion News Desk - India