Pakistan extends regionally competitive energy rates to export sectors

Pakistan’s government has extended regionally competitive energy for export sectors, including the burgeoning textile industry of the country.

According to details, Federal Finance Minister Ishaq Dar presided over a meeting of the Economic Coordination Committee (ECC) on 27th October 2022 to consider the facility for the export sectors.

The commerce ministry put forward a summary seeking an amendment to an ECC’s earlier decision made on July 25 for correcting records, minutes, and notification to apply regionally competitive rates of electricity and gas for export sectors.

The meeting approved the same to ensure the rate is Rs19.99 per unit of electricity with effect from Aug 1 and $9 per unit of regasified liquefied natural gas (RLNG) with effect from July 1.

It may be noted that the All Pakistan Textile Mills Association (APTMA) has been strongly advocating for a regionally competitive energy rate to secure billions of dollars in investments in the sector.

APTMA has also been vocal on the price disparity of the system gas between Southern and Northern parts of the country, saying that the government should ensure domestic competitiveness as well to provide equal opportunity to grow.

However, the federal government believes that it cannot violate the Constitutional provisions.

Therefore, the issue of mitigating domestic price disparity is still hanging in the balance.