Ministry of Commerce (MOC), Pakistan, has prepared a revised draft of Textile and Apparel Policy 2020-25 that would be considered by the Economic Coordination Committee (ECC). Last month, Sualeh Ahmed Faruqui, Secretary of Commerce, testified before a National Assembly panel that the issue of gas prices for the textile and apparel sectors, assumed in the Policy including Captive Power Plants (CPPs), is yet to be resolved.
According to Commerce Ministry, it re-submitted the summary on Textile and Apparel Policy 2020-25 for consideration of the ECC on October 11, 2021. The decision of the ECC was as follows: “The ECC considered the summary of Commerce Ministry on Textile and Apparel Policy 2020-25 and constituted a Committee under the chairmanship of Advisor to Prime Minister on Commerce and Investment, Secretary Commerce, Secretary Power, Secretary Petroleum, Secretary Finance, and Chairman FBR to deliberate on the Policy holistically and submit viable recommendations to the ECC within two weeks for consideration. The Committee may co-opt any member as may be required.
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According to the first draft, it was proposed that electricity will be provided at Cents 9/ kWh all-inclusive and RLNG at $ 6.5/ MMBTU all-inclusive for the FY 2021-22, and the concessionary regime will be continued at regional competitive energy rates for five years after deliberation with the stakeholders.
In pursuance of the decision, the Committee held several meetings and recommended a few changes that have been incorporated by the Commerce Division in the revised draft of the Policy. However, after consultation, the Policy was altered with the following: “supply of energy (electricity and RLNG) to export-oriented units/ sectors of the textile industry at regionally competitive rates throughout the policy years without any disparity among provinces.
” The textile sector is all ears to the news of the revised Policy that has to be presented to the ECC on February 9, 2022, hoping that the revision would bring some fruitful and positive amendments to uplift the country’s textile sector.
