The business community of Pakistan recently urged the government to decrease the power tariff of the exporting companies to enhance the competitiveness and growth.
Mr Zubair Tufail, the president of Federation of Pakistan Chambers of Commerce said that supporting and incentivizing export sectors is a custom in most regional economies.
He further said that; “Prices of gas and electricity are about 50% lower in the rest of the region, along with lower costs of labor and other inputs,” while saying so he stressed that these factors had led to higher level exports from the regional countries. He also said that these measures will help in reviving the declining exports and absorbing the growing labor force via industrial growth in the country.
On the other hand the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) reiterated the demand for reduced utility tariffs for the exporting industries in order to increase their competitiveness versus regional rivals.
Pakistan has lost its shares in the global market during the time span of ten years whereas the regional competitions at the same time have grown up to really prominent positions. This phenomenon has now infuriated the local textile business entities and they have blamed the constant increasing energy tariffs for the situation. PHMA Southern Zone Chairman Muhammad Riaz Ahmed said that “The cost of doing business in Bangladesh, India, Sri Lanka and China is extremely low compared to the cost in Pakistan.”
At the same time there are different rates for the gas and water in different industrial location, around the country. Believed is that with the control on the cost and provision of competitive energy prices the damaged textile industry can be revived. The textile industry also demanded for the release of outstanding tax rebate and refund of announced by the government.
