Weavers seek uniform gas tariff

Caution discrimination between old, new units will hamper exports

KARACHI: While demanding a level playing field, the new entrants in the five zero-rated export-focused sectors have pointed out that the government will not be able to achieve its goal of enhancing exports if different gas tariffs are applied to old and new players.

The government, in its policy, imposed a gas tariff of 6.5 cents on older units and 7.5 cents on new units of the five zero-rated sectors.

“The policy spurs weavers across the country to establish small and medium weaving units,” said Pakistan Weaving Mills Association Patron-in-Chief Asif Siddiqui. “Now, the weavers can also contribute to the export boom desired by the government for addressing the balance of payments crisis.”



As a matter of fact, the new units should be encouraged even more to step up exports, he emphasised.

Apart the different tariff rates, Siddiqui pointed out, the bureaucracy was not allowing new connections to the zero-rated sectors.

“It is depriving the industry of the benefits of the export-led policy and is also becoming a hurdle instead of a facilitator in the way of promoting exports,” he said.

The association chief outlined that there was immense confusion and asked the textile ministry and the finance ministry to take steps in order to remove discrimination between the old and new units.

Moreover, he demanded an even playing field regardless of when the unit was set up.

Many investors, who purchased land for expansion of their weaving plants following the announcement of the policy, have been hurt by the role of the bureaucracy in implementing the initiative.

He regretted that the approach was discouraging the exporters from enhancing their capacity by setting up new units.

Published in The Express Tribune, January 22^nd, 2019.

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