Mega Leather Show: ‘Pakistan to reduce energy woes by 2018’

Notification of power tariff cut for industrial consumers to be issued soon, says Dastgir

LAHORE:

The government will reduce the energy crisis significantly by 2018 if not end it, said Federal Minister for Commerce Khurram Dastgir while speaking at the second ‘Pakistan Mega Leather Show’ on Thursday.

Dastgir said that the notification of electricity tariff cut by Rs3 per unit for industry would be issued soon to enable exporters to compete with regional and global competitors.

He said the sector had a lot of potential and the government would do its best to facilitate it. “I will talk with the Federal Board of Revenue (FBR) regarding the duty drawbacks and tax refunds for the sector.

“In order to promote this industry, the government has decided to establish a ‘Leather Export Promotion Council’ on both local and international platforms; the notification will be issued next week,” he added.



Questioned over the trade prospects with Iran after the lifting of sanctions, he said, “Pakistan will take full advantage of this. Iran has already laid the gas pipeline for gas import to Pakistan. China-Pakistan Economic Corridor is under way while the Liquefied Natural Gas (LNG) import agreement with Qatar is in its last stage. In a couple of months, industries will get natural gas at much cheaper rates.”

Meanwhile, Pakistan Footwear Manufacturers Association (PFMA) Chairman Waseem Zakaria said the leather sector was the second largest export-oriented and value-added industry in the country.

“During 2014-15, leather exports amounted to $1.195 billion. Besides the 5% contribution in exports, this sector also contributes 2.67% of GDP along with over one million workers throughout Pakistan,” he explained.

He lamented the fact that the exports had declined and reached a stagnant level whereas exports of regional competitors had increased manifold. “In China, exports increased 19%, in India 63% and in Bangladesh 73.58% during the last five years. This clearly shows that our government does not prioritise the sector,” he added.

“Exports are declining due to the worldwide economic slowdown. Therefore, the government needs to give incentives so that it remains globally and regionally competitive.

“The exhibition would definitely portray a positive image of the country, improve its position and motivate exporters to move ahead.” 

Published in The Express Tribune, January 29^th,  2016.

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