A relief package worth Rs. 26 billion has been approved for the textile sector of Pakistan. The news has been highly appreciated by the textile industries all over the country. The Cabinet Committee on Energy (CCOE) approved this package by extending the tariff scheme.
The package was initially approved in November 2020 and was set to expire on April 30, 2021.
The Government had initially introduced the gas supply scheme at a discounted rate for the export-oriented industry. But later, the Petroleum Division said that all sectors, including those which were not exporting textile products, were availing the subsidy.
The Petroleum Division also proposed that only the export-oriented industry should avail the subsidy on gas supply.
Interestingly, the textile industry was not only availing the subsidy on gas supply, but it was also receiving electricity at discounted rates.
Moreover, the textile sector was receiving gas for its captive power plants. The Government had approved a plan for conducting an audit of captive power plants. But some textile industrialists obtained a stay order from the court as they were not ready for the audit of inefficient captive power plants.
It is believed that such a huge relief could be beneficial for the textile industries, and they could perform well to meet their targets regarding exports.
