Home / Knowledge / News / Textiles / Pakistan urged to reduce gas, power tariff on textiles
Pakistan urged to reduce gas, power tariff on textiles
03
Aug '17
The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has urged the Pakistan Government to reduce the tariff rates on natural gas and power used by the textile industry at par with regional rivals to make the country’s export competitive in global market. At present Pakistan’s cost of production is PKR 3/unit higher than its competitors.
 
FPCCI vice president Saquib Fayyaz Magoon urged Pakistan’s finance minister Muhammad Ishaq Dar and Ministry of Textile Industry (MOTI) secretary Hassan Iqbal for this step at a recent meeting with the latter at the chamber’s headquarters in Karachi, the organisation said in a press release.
 
Magoon said the textile industry is burdened with PKR. 3.63/KWH surcharge on electricity and gas infrastructure development cess (GIDC), which could not be passed on to the international buyers.
 
The PKR 180 billion package announced by the prime minister in January 2017 was a non-starter as it had restricted its monetary incentives to only those exporters that would show a 10 per cent increase in their export revenue with effect from July 1 this year compared to last year, he said.
 
“However, under the present scenario of a long outstanding – sales tax-refund culture, there is a little likelihood of a 10 per cent increase in export as exporters are compelled to borrow to meet their liquidity requirement, which in-turn adds to their input cost,” Magoon added.
 
Expressing concern over the rebate to export of yarn, a basic raw material for the weaving industry, he said spare parts of textile machinery should also be allowed to be imported at zero rate just like the machinery as these parts are finally sold to the textile industry.
 
Former FPCCI vice president Waseem Vohra said gas tariff in Pakistan is $7.65/unit compared to $4.5/unit in India, $4.20/unit in Vietnam, and $3.10/unit in Bangladesh. The tax on exports in Bangladesh is levied at 0.25 per cent whereas in Pakistan, the rate is 1 per cent, which, after including indirect taxes and other levies, comes to 11 per cent of cost of exports, he said. Vohra reiterated that the higher cost of production in Pakistan is one of the main causes of export slide. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Plan under way to revive Egypt's state-run textile firms

Textiles | On 20th Oct 2018

Plan under way to revive Egypt's state-run textile firms

Egyptian minister for the public enterprise sector Hisham Tawfiq...

Myanmar asks garment units to set up skill testing centres

Apparel/Garments | On 20th Oct 2018

Myanmar asks garment units to set up skill testing centres

Myanmar’s ministry of labour, immigration and population has asked...

Results of Cameroon transgenic cotton trials by 2018 end

Textiles | On 20th Oct 2018

Results of Cameroon transgenic cotton trials by 2018 end

Cameroon’s national cotton development company Sodecoton will...

Interviews View All

Luke Otten, Wigwam Mills Inc

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Rajiv Sirohi, Shara

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Top executives, Textile industry

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Rajat Jaipuria,

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Maya Simova,

Maya Simova

Inter Expo and Congress Center (IEC) is a prominent exhibition centre in...

Deepprakash Agrawal,

Deepprakash Agrawal

Radhey Weaves is a Surat-based manufacturer of brocade fabrics. MD...

Justin Gutierrez, INDA

Justin Gutierrez
INDA

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Davide Vigano, Sensoria

Davide Vigano
Sensoria

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Razvan Popescu, Directa Plus SpA

Razvan Popescu
Directa Plus SpA

Directa Plus is one of the largest producers and suppliers worldwide of...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Bani Batra,

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search